If the value of timber is the following increasing function of time: V = 2√t 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%

If the value of timber is the following increasing function of time: V = 2√t 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%

Name: If the value of timber is the following increasing function of time:V
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Description: If the value of timber is the following increasing function of time:V = 2√tExpressed in units of Rs. 1000. Assuming a discount rate of r and also assuming zeroupkeep cost during the period of timber growth, what is the optimal time to cut the timberf

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter6: Optimization Models With Integer Variables

Section6.4: Fixed-cost Models

Problem 20P

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