N. of bottles sold after 5th year

Ciao Francesca!

From the information you shared, it seems that the decision to sell 192 bottles (120 from the initial investment and 72 from the first investment) after 5 years is based on what the case presents. If the case explicitly states these numbers in the question itself, there's no need to question why these specific numbers were chosen - it's simply part of the scenario you're working with.

However, if these numbers (192 bottles) are only mentioned in the answer and not as part of the question, then understanding the reasoning might require seeing the entire case. In that situation, I would need more information to clarify exactly how these numbers were calculated or chosen.

The logic for selling 192 bottles could stem from:

1. Investment Maturation: The 120 bottles from the initial investment and 72 from the first investment total 192 bottles, and after 5 years, they may have reached their optimal selling point (either because the wine has matured or the market conditions are favorable).
2. No Mention of Reserve Stock: Unless the case explicitly mentions keeping a stock or reserving some bottles for future sales, it makes sense to assume the strategy is to sell all the invested bottles after 5 years.

In summary, if the numbers are provided directly in the case, there’s no need to overanalyze why they were chosen. If they are only mentioned as part of the answer, then I'd need to see the full context to better explain how they arrived at 192 bottles being sold after the 5th year.

If you need any further help, don't hesitate to reach out. I always offer a 30-min free consultation. 

Kind regards and best of luck!

Kairavee

Hi Francesca, to go beyond what a chatbot can offer - the 192 bottles is directly grounded in the case data: namely, that investment wines are always sold after 5 years (which is a data point you'd have to ask of the interviewer to understand the cash flows of the whole scheme). So to be sure - at the end of year 5, the wine you have to sell includes the up-front investment (120 bottles) + the bottles acquired during the first year (72 bottles).

Hi Francesca, 

Regarding the 192 bottles - here's what I think: 

1. Initial Investment and Growth: You started with 120 bottles as your initial investment and later acquired 72 more bottles (possibly from reinvesting or as part of a second round of investment).
2. Timing the Sale: After 5 years, the decision to sell those specific 192 bottles likely comes down to timing. Wine investments are often sold after they've aged for a while, increasing in value. After 5 years, these 192 bottles may have reached their optimal value, making it a good time to sell and realize profits.
3. Why Not Sell Everything?: You might not sell everything because you still want to maintain a stock of bottles to continue benefiting from future appreciation. Keeping a portion of your collection ensures you're still invested in wine for the long term.
4. Stock Management: The specific number of bottles to sell (192) might have been chosen based on the value growth and your investment strategy—balancing between realizing profits and maintaining a good stock for future sales.

In short, the decision to sell 192 bottles after 5 years seems to be based on the idea of maximizing profits while keeping some bottles in reserve for continued growth.

I hope this helps clear things up!

Best Alessa :)