Closing case bunyan lumber llc

The company was founded 70 years ago by Pete Bunyan. Additionally, an older forest has a higher grade of timber.

The value of these deposits in 20 years is: The table below shows the current price per MBF for the three grades of timber the company feels will come from the stand: All of the harvesting, processing, replanting, and transportation are to be handled by subcontractors hired by Bunyan Lumber.

Were the solution steps not detailed enough? Since the forest was planted 20 years ago, the options available in the case are, 50, and year harvest cycles. This is expected since the growth in the trees increases at a decreasing rate.

In this case, it is simpler to use real cash flows, although nominal cash flows would yield the same result. The longer the forest is allowed to grow, the larger the harvest becomes per acre.

So, the real required return on the project is: The cash flows will grow at the inflation rate, so we can use the real or nominal cash flows. The forest Bunyan Lumber is evaluating was planted by the company 20 years ago and is made up entirely of Douglas fir trees.

This method of harvesting allows for faster growth of replanted trees. Lumber is sold by the company for its "pond value.

When should the company harvest the forest? The company was founded 70 years ago by Pete Bunyan. When the company logs the forest, it will immediately replant saplings, which will allow for a future harvest.

The major decision the company faces is when to log the forest. The longer the forest is allowed to grow, the larger the harvest becomes per acre. The effective year interest rate for the project is: Help us make our solutions better Rate this solution on a scale of below We want to correct this solution.

Bunyan Lumber, LLC, harvests timber and delivers logs to timber mills for sale. Lumber is sold by the company for its "pond value.

The major decision the company faces is when to log the forest. These costs are the same no matter what the harvest schedule since they are based on acres, not MBF.Bunyan Lumber, LLC Bunyan Lumber, LLC, harvests timber and delivers logs to timber mills for sale.

The company was founded 70 years ago by Pete B. Chapter 9 closing case Ashford University BUS Managerial Finance When should Bunyan Lumber, harvest the forest? The cash flow will grow at the inflation rate of %. The cash flow will grow at the inflation rate of %. View Notes - Bunyan Lumber from FINANCE at University of Maryland.

Chapter 7: Bunyan Lumber, LLC Input area: Total acreage Years since original planting 1P pond value 2P pond value 3P pond%(5). Free Essays on Bus Bunyan Lumber Closing Case for students.

Use our papers to help you with yours 1 - Bunyan Lumber, LLC, harvests timber and delivers logs to timber mills for sale.

The company was founded 70 years ago by Pete Bunyan.

The current CEO is Paula Bunyan, the granddaughter of the founder. Uploaded by. Mt Vo. Download with Google Download with Facebook or download with email.

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Closing case bunyan lumber llc
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