Calculation of number of wine bottles in Year 5

Question

Hi Team,

In Year 5, why aren't we considering the sale of 120 bottles (investment cellar in Year 0)? Instead, we are including these 120 bottles along with the 72 bottles from Year 1, in Year 6 sale calculation, why is this so? I would like to understand the logic behind the same.

Thanks in advance!

Answer 1

Hi there,

I would be happy to share my thoughts on it:

It seems like in the case study, the initial investment is considered to be made in year 0, and as a result, the sale of 120 bottles takes place after 5 years, i.e., in year 5.

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Best,

Hagen

Answer 2

Hi there,

As the case states, you are selling the 120 initial investment in year 5!

Answer 3

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