What is the net present value per acre for no management?

What is the net present value per acre for no management?

• A. $1250 per acre
• B. $200 per acre
• C. $1000 per acre
• D. $300 per acre

Answer: (B)

Net present value per acre for no management is found by discounting the future net revenues that would occur if you do nothing to the stand. In this baseline, you don’t harvest or invest in silvicultural actions, so cash flows come only from whatever final harvest value you expect (if any) and any ongoing costs that still occur even with no management. When you apply the problem’s discount rate and time horizon, the present value of those no‑management cash flows comes out to $200 per acre. This modest value reflects the lack of gains from thinning, intermediate cuts, or optimized rotation length, which active management would capture and which typically drives higher NPVs in other scenarios.

Net present value per acre for no management is found by discounting the future net revenues that would occur if you do nothing to the stand. In this baseline, you don’t harvest or invest in silvicultural actions, so cash flows come only from whatever final harvest value you expect (if any) and any ongoing costs that still occur even with no management. When you apply the problem’s discount rate and time horizon, the present value of those no‑management cash flows comes out to $200 per acre. This modest value reflects the lack of gains from thinning, intermediate cuts, or optimized rotation length, which active management would capture and which typically drives higher NPVs in other scenarios.