The term of criteria for assessment of profitability of forest projects include:
Correct answer: E. All of the above
- A. Time preference
- B. Risk
- C. Expectation
- D. Choice of discount rate
- E. All of the above
Explanation
Profitability assessment of long-rotation forest projects must account for the timing of returns, uncertainty and expectations, and the discount rate used to compare present and future values. These factors together form the main investment criteria.
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