The answer is in Math... I posted this question once already and
received and off topic essay as the answer when I just don't
understand the math. Thank you.
5. Now say you have a forest with current value equal to 4 (in 100,000) that will grow as FV = 4 x 2V Find the FONC for an optimal harvest in terms of present value (let the interest be "Y", initially). Find the expression for optimalt and check the SOSC. Consider your answer ifr=0.05, 0.10, 0.20. How does the interest rate impact the timber business?
5. Now say you have a forest with current value equal to 4 (in 100,000) that will grow as FV = 4 x 2V Find the FONC for
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5. Now say you have a forest with current value equal to 4 (in 100,000) that will grow as FV = 4 x 2V Find the FONC for
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