an area of land has been planted with christmas trees. on december 1, twelve years from now, the trees will be ready for harvest. at that time, the standing christmas trees can be sold for $2,000 per acre. the land, after the trees have been removed, will be worth $400 per acre. there are no taxes or operating expenses, but also no revenue from this land until the trees are harvested. the interest rate is 11%. 1) what can we expect the market price of the land to be? 2) suppose that the christmas trees do not have to be sold after 10 years, but could be sold in any year. their value if they are cut before they are 10 years old is zero. after the trees are 10 years old, an acre of trees is worth $2,000 and its value will increase by $100 per year for the next 30 years. after the trees are cut, the land on which the trees stood can always be sold for $400 an acre. when should the trees be cut to maximize the present value of the payments received for trees and land? what would be the market price of the acre of the land? 3) will your reply on the second question change if the rate becomes 15%? 8%?