About the optimal time of tree harvest problem

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Reference no: EM131107495

Which of the following statements is correct about the optimal time of tree harvest problem?

a. The optimal time of harvest is independent of the initial costs of planting the tree

b. The optimal time of harvest is when the marginal benefit of an additional year’s growth equals the marginal opportunity cost of capital.

c. The optimal time of harvest decreases when the market interest rate increases.

d. All of the above.

Reference no: EM131107495

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