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8. Assume that you are planning to buy a 15-year-old pine plantation, which you intend...

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8. Assume that you are planning to buy a 15-year-old pine plantation, which you intend to grow to age 30. At that time you will cut the timber to use as raw material for your paperboard and packaging company and then sell the land for $300.00 per acre. You expect to harvest 60 cords of pulpwood per acre at age 30, and you will have annual costs of $3.00 per acre for the 15 years. The plantation will cost you $600.00 per acre. How much will you have to get for the pulpwood per cord to make a 7% percent return on your investment? 8. Assume that you are planning to buy a 15-year-old pine plantation, which you intend to grow to age 30. At that time you will cut the timber to use as raw material for your paperboard and packaging company and then sell the land for $300.00 per acre. You expect to harvest 60 cords of pulpwood per acre at age 30, and you will have annual costs of $3.00 per acre for the 15 years. The plantation will cost you $600.00 per acre. How much will you have to get for the pulpwood per cord to make a 7% percent return on your investment

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