A timber rancher is considering harvesting a stand of trees. The wood from the trees would sell today for $70,000. If the timber rancher allows the trees to grow for two more years, he can sell more wood and earn $79,000. At an interest rate of 8%, should the timber rancher harvest the trees today or wait two years before harvesting?

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The Answer of A timber rancher is considering harvesting a stand of trees. The wood from the trees would sell today for $70,000. If the timber rancher allows the trees to grow for two more years, he can sell more wood and earn $79,000. At an interest rate of 8%, should the timber rancher harvest the trees today or wait two years before harvesting?

A Timber Rancher Is Considering Harvesting a Stand of Trees