You Are Given the Following Net Future Values for Harvesting $$\begin{array} { l c c c c c c } \text { Year } & 0 & 1 & 2 & 3 & 4 & 5 \\\text { Net Future Value } & 100 & 125 & 150 & 175 & 195 & 210\end{array}$$

question 72

Multiple Choice

You are given the following net future values for harvesting trees from a plot of forestland.(This is a one-time harvest.) $$\begin{array} { l c c c c c c } \text { Year } & 0 & 1 & 2 & 3 & 4 & 5 \\\text { Net Future Value } & 100 & 125 & 150 & 175 & 195 & 210\end{array}$$
If the cost of capital is 15%,calculate the optimal year to harvest:

• A)year 1
• B)year 2
• C)year 3
• D)year 4

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Definitions:

Wealthy Minority

A small segment of the population that holds a disproportionately large share of the total wealth and economic resources of a society.

Governement Invests

The process by which the government spends on capital projects or injects funds into the economy, aiming to promote economic growth.

Labor Productivity

A measure of economic output per unit of labor input, often assessed as output per hour worked.

Quality of Labor

Refers to the skill levels, education, training, and productivity of workers within an economy.