Assume a forest has a value of ()=40^(0.300.0052) where t= time in years, and the interest rate is 3%.

a.When does the forest reach its highest value?

b.Why is this year not optimal from an economic perspective?

c.What is the optimal time to harvest, given one rotation?

d.How is the optimal time affected by (you do not have to calculate anything, just explain)

i.More rotations of the forest

ii.An increased land value

iii.A lower interest rate