Fix this code
future_value <- function(present_value, rate, years) {
return(present_value * (1 + rate)^yeras)
}
print(future_value(1000, 0.05, 10))
yeras should be years
What is the formula for Land Expectation Value (LEV)
LEV=NPV/(1−(1+r)^−t)
What does NPV stand for, and why is a positive NPV desirable?
Net Present Value; a positive NPV indicates a project is expected to generate more value than it costs
Longleaf Pine once spanned across much of the southeast U.S., but its range has greatly declined. What percent of land in that range is still occupied by longleaf?
3-5%
What is the most commercially important tree species in the southeastern U.S.?
Loblolly Pine
Why wont this load?
data <- read.csv("C:\Users\Student\Documents\forest_data.csv")
head(data)
In R, backslashes (\) must be either doubled (\\) or replaced with forward slashes (/)
What discount rate is typically used in forest finance calculations?
Varies, but often between 4%–8% depending on risk and market conditions.
If a project has an IRR of 10% and the discount rate is 8%, should you accept or reject the project?
Accept, because IRR > discount rate
Compared to other southern pines, longleaf pine has a slower early growth rate. What unique adaptation helps it survive in fire-prone ecosystems?
The "grass stage," where seedlings remain low to the ground for several years while developing a deep root system, making them resistant to fire before rapid vertical growth begins
What does the term "Bare Land Value" mean in forestry finance?
The value of forestland with no standing timber, often calculated using LEV.
This code received an error message, why?
data <- data.frame(x = 1:10, y = (1:10)^2)
ggplot(data, aes(x, y)) + geom_line()
The ggplot2 package must be loaded using library(ggplot2).
A forest stand generates $500 per acre per year indefinitely. If the discount rate is 5%, what is its present value per acre
$500 / 0.05 = $10,000 per acre
If an investment has a payback period of 6 years and a required payback threshold of 5 years, should it be accepted?
No, because the payback period exceeds the required threshold
Longleaf pine is often preferred for high-quality timber products. What characteristic of its wood makes it especially valuable?
Longleaf pine produces dense, high-resin, straight-grained wood, making it highly durable and ideal for construction, flooring, and shipbuilding
A landowner has a 100-acre stand with a site index of 70. What does "site index" mean?
The expected height of dominant trees at a given age.