Neco Model Questions Vol1 2019 Agricultural Science Question 20
Practice objective / multiple choice question 20 from the 2019 Neco Model Questions Vol1 Agricultural Science examination.
A pine forest stand contains an initial timber volume of 5,000 m³. The stand grows naturally at 8 % of its current volume each year. A manager wishes to harvest a constant amount each year for five consecutive years, subject to two conditions: (a) the annual harvest may not exceed the net growth in that year, and (b) after the fifth harvest the remaining volume must be at least 3,000 m³. (i) What is the greatest constant annual harvest volume (in m³) that satisfies both conditions? (ii) Assuming the market price of timber is N150 per m³ and the discount rate is 10 % per year, compute the net present value (NPV) of the harvests over the five‑year period.
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About This Question
This is Neco Model Questions Vol1 2019 Agricultural Science Question 20. It is one of the objective questions from the 2019 Neco Model Questions Vol1 Agricultural Science examination.
Difficulty level: Hard .
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