Unformatted text preview: determines the rotation time that maximizes the discount present value of the forest. 2. Suppose that p = 2 c = 1 d = .2 r = .1 V ( t ) = t 1 + t Find the approximate optimal rotation period for this forest numerically. That is, ﬁnd the value of I for which the either the expression for the value of the forest is maximized, or for which the ﬁrst order condition determining this maximum is most nearly satisﬁed. You may want to use a computer for this calculation. 3. Using the model developed in chapter 10, and supposing that your forest has the following parameters, p = 11 c = 1 d = 10 V ( I ) = e rI verify that I * = 2 is an optimal harvest period. 4. p. 342 problems 1ab, 4. 1...
View
Full
Document
This note was uploaded on 01/27/2009 for the course ECO 314 taught by Professor Matthewturner during the Winter '08 term at University of Toronto.
 Winter '08
 MATTHEWTURNER

Click to edit the document details