if, hypothetically speaking this number is 100 trees for each option, the cumulated value of both options is:
PV5 option 1 + PV5 option 2) * 100 = (21.6 + 20.78) * 100 = 4,237.9
PV10 option 1 + PV10 option 2) * 100 = (23.47 + 21.62) * 100 = 4,507.6
The comparison's results suggest that cutting the trees after 10 years maximizes the Mr. Smith's tree value. It also seems that the tree value is increasing in time and the growth rate is increasing in time, which implies that the more Mr. Smith can wait before cutting the trees the higher their value will be at the cutting moment.
Thinning the forest will lower their total value. However, the thinning will also relieve the cost burden. Assuming that Mr. Smith cuts half of the forest growing according to option 2, the total tree value in:
year will be...
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