Question

For a renewable resource like timber, a decrease in the interest rate will tend to have what effect on the amount of years a forester would wait before harvest?

Select one:

a. Decrease the number of years the forester would wait before harvest.

b. Have no effect on the number of years the forester would wait.

c. Increase the number of years the forester would wait before harvest.

d. The effect would depend on the number of possible rotations.

Answer 1

The correct option is

c. Increase the number of years the forester would wait before harvest.

For a renewable resource like timber, a decrease in the interest rate will tend to have Increase the number of years the forester would wait before harvest.

For a renewable resource like timber, an increase in the interest rate will tend to have decrease the number of years the forester would wait before harvest.   effect on the amount of years a forester would wait before harvest (NPV)

answered by: anonymous