Price stumpage drift

α

2.9%

Price stumpage volatility

β

15.9%

Actual stumpage log price

P_T

39.74 US$/ha

Initial stumpage price

P₀

21.43 US$/ha

Risky rate of Capital

WACC

12%

Stands regeneration cost

C

882 US$/ha

Stands cost per unit initial price

c = C/P₀

41.16