Gce Model Questions Vol1 2023 Agricultural Science Question 38
Practice objective / multiple choice question 38 from the 2023 Gce Model Questions Vol1 Agricultural Science examination.
A timber stand follows the volume growth model \(V(t) = 0.5t^{2} - 0.02t^{3}\) (m³ ha⁻¹), where \(t\) is age in years (0 ≤ t ≤ 30). The price of timber is ₦2,000 m⁻³ and the planting cost is ₦50,000 ha⁻¹ (incurred at t = 0). Using a discount rate of 8 % per annum and the Faustmann formula \(NPV = \dfrac{V(t)\times2000 - 50,000}{e^{0.08t} - 1}\), determine the integer rotation age \(t\) (in years) that maximises the net present value per hectare.
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About This Question
This is Gce Model Questions Vol1 2023 Agricultural Science Question 38. It is one of the objective questions from the 2023 Gce Model Questions Vol1 Agricultural Science examination.
Difficulty level: Hard .
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