Neco Model Questions Vol1 2017 Agricultural Science Question 36
Practice objective / multiple choice question 36 from the 2017 Neco Model Questions Vol1 Agricultural Science examination.
A forest stand of a fast‑growing species yields timber volume (in cubic metres) according to the growth function \(V(t)=0.02\,t^{2.5}\), where \(t\) is the age in years. The market price of timber is \(P_{0}\) per cubic metre and is expected to increase by 5% per year. The discount rate for present‑value calculations is 10% per year. Ignoring all costs, determine the integer rotation age (in years) that maximises the present value of a single harvest. State the optimal age and the corresponding present‑value factor (in terms of \(P_{0}\)).
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About This Question
This is Neco Model Questions Vol1 2017 Agricultural Science Question 36. It is one of the objective questions from the 2017 Neco Model Questions Vol1 Agricultural Science examination.
Difficulty level: Hard .
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