The value of a fir tree in your plantation increases with the age of the tree according to the formula 20t V = 1 + 0.05t where t is the age of the tree in years. Given a continuous inflation rate of 5% per year, the discounted (present) value of a newly planted seedling is -0.05t p = ve %3D At what age (to the nearest year) should you harvest your trees to ensure the greatest possible discounted value?
The value of a fir tree in your plantation increases with the age of the tree according to the formula 20t V = 1 + 0.05t where t is the age of the tree in years. Given a continuous inflation rate of 5% per year, the discounted (present) value of a newly planted seedling is -0.05t p = ve %3D At what age (to the nearest year) should you harvest your trees to ensure the greatest possible discounted value?
Calculus: Early Transcendentals
8th Edition
ISBN:9781285741550
Author:James Stewart
Publisher:James Stewart
Chapter1: Functions And Models
Section: Chapter Questions
Problem 1RCC: (a) What is a function? What are its domain and range? (b) What is the graph of a function? (c) How...
Related questions
Question
Transcribed Image Text:The value of a fir tree in your plantation increases with the age of the tree according to the formula
20t
V =
1 + 0.05t
where t is the age of the tree in years. Given a continuous inflation rate of 5% per year, the discounted (present) value of a newly planted seedling is
-0.05t
p = ve
%3D
At what age (to the nearest year) should you harvest your trees to ensure the greatest possible discounted value?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, calculus and related others by exploring similar questions and additional content below.Recommended textbooks for you
Calculus: Early Transcendentals
Calculus
ISBN:
9781285741550
Author:
James Stewart
Publisher:
Cengage Learning
Thomas' Calculus (14th Edition)
Calculus
ISBN:
9780134438986
Author:
Joel R. Hass, Christopher E. Heil, Maurice D. Weir
Publisher:
PEARSON
Calculus: Early Transcendentals (3rd Edition)
Calculus
ISBN:
9780134763644
Author:
William L. Briggs, Lyle Cochran, Bernard Gillett, Eric Schulz
Publisher:
PEARSON
Calculus: Early Transcendentals
Calculus
ISBN:
9781285741550
Author:
James Stewart
Publisher:
Cengage Learning
Thomas' Calculus (14th Edition)
Calculus
ISBN:
9780134438986
Author:
Joel R. Hass, Christopher E. Heil, Maurice D. Weir
Publisher:
PEARSON
Calculus: Early Transcendentals (3rd Edition)
Calculus
ISBN:
9780134763644
Author:
William L. Briggs, Lyle Cochran, Bernard Gillett, Eric Schulz
Publisher:
PEARSON
Calculus: Early Transcendentals
Calculus
ISBN:
9781319050740
Author:
Jon Rogawski, Colin Adams, Robert Franzosa
Publisher:
W. H. Freeman
Calculus: Early Transcendental Functions
Calculus
ISBN:
9781337552516
Author:
Ron Larson, Bruce H. Edwards
Publisher:
Cengage Learning