the number of bottles shouldn't be 530 in Year 5?

Question

at the end of year 5 we would have sold 192 bottles (kickstart + # of 1st year investment). in year 4 the number of investment bottle would be 408. So, in Year 5 it will be 408 (year 4 # of investment bottle) + 72 (investment per month) - 192 (sold off kickstart) = 288 bottles.

Please let me know if i've got it wrong

Answer 1

Hey Pearl,

I think the 530 are correct. This is how I would do the calculation:

The bottles from the drinking cellar always remain at 50. The bottles from the investment cellar are the 120 kickstart bottles plus 72 new bottles per year.

So it would be

Year 0 (kickstart): 50 drinking bottles + 120 kickstart investment bottles = 170 bottles
Year 5: 50 drinking bottles + 120 kickstart investment bottles + 72 new bottles * 5 years = 530.

The bottles are sold at the end of year 5, so the stock reduction takes place in year 6.

Does that make sense to you?

Answer 2

For the trucking cost you only have a reduction in cost that equals to 50% of the 95% so you can calculate the saving... (read entire answer)

For the trucking cost you only have a reduction in cost that equals to 50% of the 95% so you can calculate the savings simply by multiplying 95% by 50% If you only had a cost re... (read entire answer)