A student buys a classical estate at K30. However the value of the estate is known...
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A student buys a classical estate at K30. However the value of the estate is known to change. According to the following differential equation. dy dt + y = 12 a) Find the time path of the value of the estate b) If he auctions the estate at exactly t = 5, what should be the reservation price? A student buys a classical estate at K30. However the value of the estate is known to change. According to the following differential equation. dy dt + y = 12 a) Find the time path of the value of the estate b) If he auctions the estate at exactly t = 5, what should be the reservation price?
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a Solution The solution to the differential equation is given by yt 12e4t 12 Ther... View the full answer
Related Book For
Financial Accounting: A Business Process Approach
ISBN: 978-0136115274
3rd edition
Authors: Jane L. Reimers
Posted Date:
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