Tract of land for plantation management

Assignment Help Operation Management
Reference no: EM131142852

You are looking to buy a tract of land for plantation management. You find two available pieces of land in the region. All thinnings will produce pulpwood. Use the following information to answer the questions.

Tract #1

Current age of Rotation: 27 years

Planting Costs: $125/acre

Tax and Management Fees: $8/ac/yr

Thinning Volume (age 18): 51.38 tons/acre

Thinning Volume (age 25): 96.3 tons/acre

Thinning Cost (age 18 & 25): $300/acre

Final Harvest Volume (age 35): 29.8 MBF/acre

Final Harvest Cost: $600/acre

Time of Harvest Pulp Price: $16/ton

Time of Harvest Sawtimber price: $448/MBF

Discount Rate: 8%

Total Acreage: 850 acres

Listing Price: $6,325,000

Tract #2

Current age of Rotation: 29 years

Planting Costs: $85/acre

Tax and Management Fees: $7/ac/yr

Thinning Volume (age 18): 22.67 tons/ac

Thinning Volume (age 25): 80 tons/ac

Thinning Cost (age 18 & 25): $400/ac

Final Harvest Volume (age 35): 32.5 MBF/ac

Final Harvest Cost: $350/acre

Time of Harvest Pulp Price: $12/ton

Time of Harvest Sawtimber Price: $478/MBF

Discount Rate: 8%

Total Acreage: 700 acres

Listing Price: $6,700,000

A) Which tract has a higher land value? Why?

B) Which piece of land is the better deal? Why? (Hint: Consider the standing timber in addition to the land to evaulate the seller's estimation of value)

C) Which piece of land would you buy and why?

Reference no: EM131142852

Questions Cloud

Software subcontractor has filed for bankruptcy protection : You just found out that your software subcontractor has filed for bankruptcy protection. How will you communicate this significant risk to your management? Do you plan to communicate the risk as soon as possible, or take the time to assess it? What i..
Areas you need to account for are connectivity : You are the executive director for a growing, prosperous 8 physician medical clinic. You would like to hire another 2 doctors; however, the current clinic space is inadequate. You have leased a beautiful new space in a medical office building across ..
Lay the groundwork for the high-intensity conflict : As a good project manager, you try to plan for conflict avoidance. You now have a low intensity conflict with a functional manager and, as in the past, handle the conflict with confrontation. If you knew that there would be a high-intensity conflict ..
Tract of land for plantation management : You are looking to buy a tract of land for plantation management. You find two available pieces of land in the region. All thinnings will produce pulpwood. Which tract has a higher land value? Why?
Pricing-distribution and marketing communications : The company is a non medical in home care company marketed toward seniors. Identify and describe the primary research (online or off-line) you will need to conduct and support your marketing strategy, including product management, pricing, distributi..
Time management skills by knowing the energy cycle : Is it possible for a project manager to improve his time management skills by knowing the “energy cycle” of his people? Can this energy cycle be a function of the hour of the day, day of the week, or whether overtime is required?
Determining marketing effectiveness and efficiency : The company is a non medical in home care company geared toward seniors.1. Investigate the various ways to evaluate marketing effectiveness. Recommend three specific marketing metrics to apply in determining marketing effectiveness and efficiency.
Test possible for people working in project environment : In a project environment, time is a constraint rather than a luxury, and this creates a problem for the project manager who has previously never worked with certain team members. Is such a test possible for people working in a project environment? Ar..

Reviews

Write a Review

Operation Management Questions & Answers

  Identify sources of risk for each member of buying center

Assume that you make scanners and this situation is pretty typical of what you would find. How would this information influence your marketing activities? Be as specific as possible.

  What are the activities required to produce those outputs

What are the outputs of your work unit if you are a manager at a fast-food restaurant? What are the activities required to produce those outputs? What are the inputs?

  Fixed order placement-transportation and receiving cost

Demand for the Desk Pro computer at Best Buy is fairly constant day-to-day at a rate of 1,000 units per month. Best Buy incurs a fixed order placement, transportation, and receiving cost of $4,000 each time an order is placed.

  To control monitoring and reduce risk

To control monitoring and reduce risk with process control software Automate compliance, control monitoring, and internal control management across your enterprise - no matter your industry or company size. Our process control software can help you i..

  Calculate the financial impact of buying a ct unit

Calculate the financial impact of buying a CT unit that would cost 3 million, have a fyear useful life, it ould have a 10 per cent salvage value and a profit per procedure of $400 and generate a volume of 450 procedures per uear.

  Lean came to prominence in the academic literature

Lean came to prominence in the academic literature during the mid-1980s as a result of the increased curiosity surrounding the ‘secret’ of practical Japanese manufacturing techniques such as Just-In-Time (JIT) and the Toyota Production System (TPS) i..

  Cost of twentieth iteration-cost of the fortiet iteration

Suppose that you are the assigning costs to a major project to be undertaken this year by your firm, University Applications. One particular coding process involves many labor-hours, but highly redundant work. You anticipate a total of 200,000 labor-..

  What is involved in the approach for crashing projects

Define project crashing. What is involved in the approach for crashing projects? Identify three specific ways to crash a project.

  Planned strategy in e-procurement in terms of the goals

You have recently assumed a senior management position at Services, LLC, a mid-sized Wisconsin-based company that manufactures and sells goods mostly to businesses. Discuss your planned strategy in e-procurement in terms of the goals to be accomplish..

  Construction cost survey-estimated cost per square foot rate

Over the years, National Association of Home Builders (NAHB) has periodically conducted “construction cost surveys” to collect information from builders on the various components that go into the price of a typical single-family home. What is the est..

  Single inspection station before proceeding

Vehicles arrive at a border crossing and must be inspected by a single inspection station before proceeding. The vehicles arrive at the station according to a Posson disribution at a rate of 882 vehicles/hour (time between arrivals is exponentiall..

  How many bottles should be orders during-particular visit

Forest Restaurant stocks a red Brazilian table wine purchased from a nearby city. The daily demand for the wine at the restaurant is normally distributed with the mean of 20 bottles standard deviation of 5 bottles. How many bottles should be orders d..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd