Question
Consider a planted forest with the following volume growth profile: a) Why may it not be profit-maximizing for the forest owner to delay harvesting until
Consider a planted forest with the following volume growth profile:
a) Why may it not be profit-maximizing for the forest owner to delay harvesting until the volume of their forest is maximized?
b) If the forest owners rate of return on their outside investment option increases, should they cut their forest down earlier or later than originally planned and why?
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Risk Management And Financial Institutions
Authors: John Hull
1st Edition
0132397900, 9780132397902
