Question
c) If the value of timber is the following increasing function of time: V=2 Expressed in units of Rs. 1000. Assuming a discount rate
c) If the value of timber is the following increasing function of time: V=2 Expressed in units of Rs. 1000. Assuming a discount rate of r and also assuming zero upkeep cost during the period of timber growth, what is the optimal time to cut the timber for sale? Calculate optimal time for r = 5%
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Advanced Financial Accounting
Authors: Thomas Beechy, Umashanker Trivedi, Kenneth MacAulay
6th edition
978-0137030385
