Answer: Both an income stream and the potential for capital appreciation.

**Explanation:** Timberland investments involve the ownership of undeveloped land and the harvesting of its trees for lumber. This dual nature of the investment generates both an income stream (from the sale of lumber) and the potential for capital appreciation (as the land value may increase over time). Options A and B are incorrect because they each overlook one of these two key benefits.

Author: LeetQuiz Editorial Team