Gce Model Questions Vol1 2020 Agricultural Science Question 7
Practice objective / multiple choice question 7 from the 2020 Gce Model Questions Vol1 Agricultural Science examination.
Two tree species are considered for a commercial forest. Species A reaches a merchantable volume of \(200\ \text{m}^3\) at age 30 years and then its volume declines by 2 % per year. Species B reaches \(180\ \text{m}^3\) at age 25 years and thereafter its volume remains constant. Timber sells for \$50 per m³ and the discount rate is 5 % per annum. Assuming the trees are harvested at the age that maximises the present value of the timber, which species provides the higher present value?
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About This Question
This is Gce Model Questions Vol1 2020 Agricultural Science Question 7. It is one of the objective questions from the 2020 Gce Model Questions Vol1 Agricultural Science examination.
Difficulty level: Hard .
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