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lpn27 lpn27
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10 months ago
The timber rights to a tract of forest can be purchased for $250,000. The harvesting agreement would allow 25% of the timber to be cut in each of the first, second, fourth, and fifth years. The purchaser of the timber rights would be required to replant, at its expense, the logged areas in Years 3 and 6. Arrowsmith Lumber calculates that its profit in each of the four cutting years would be $90,000 and that the cost of replanting the harvested areas in each of Years 3 and 6 would be $30,000. Its cost of capital is 5.5%. At what price would Arrowsmith Lumber be willing to purchase the timber rights if it requires a return on investment of 9%?
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Business Mathematics in Canada

Business Mathematics in Canada


Edition: 11th
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duankong-feiduankong-fei
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lpn27 Author
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10 months ago
This calls for a celebration Person Raising Both Hands in Celebration
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Thank you, thank you, thank you!
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Thanks for your help!!
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