A developer has a standing offer to purchase a parcel of forestland for $1,800 per...
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A developer has a standing offer to purchase a parcel of forestland for $1,800 per acre. The forest supports a 20-year-old crop that would yield $3,000 per acre if harvested in 10 years and a similar amount, net of all costs, every 30 years thereafter. If the forest owners interest rate is 8%, is it advantageous to him to sell the land to the developer now, after harvesting the present crop in 10 years, or never?
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