Solving first 4 part as per Chegg policy.
A. Price is given at 120 per ton.
At clear cut, the value of the biomass would be
100000*120=12,000,000
B. Sustainable harvest management is where only the yearly growth is utilized. This is given at 4500 tons an year. Using a discount rate of 4%, the value of this perpetuity is
4500/4%=112500 tons. At 120 per ton, its value is
=120*112500
=13,500,000
C. If the interest rate was 6%, the value of perpetuity would be
4500/6%=75000
At 120 per ton, the monetary value is
75000*120
=9,000,000
D. Under 4% scenario, the monetary value is sustainable management is higher (13.5m vs 12m) so that will be recommended.
Under 6% scenario, the monetary value of clean cut is higher (12m vs 9m) and hence clean cut would be recommended.
Consider a forest with 100,000 tons of standing timber and a growth rate of 4500 tons...
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