Suppose the value of timber grows according to the following exponential function (expressed in units of $1,000): F = 3vt, and suppose the discount rate is 7% (0.07).
What is the optimal time (t*) to cut the timber? What is the optimal present value of the timber A*(t)?
The response must be typed, single spaced, must be in times new roman font (size 12) and must follow the APA format.