Ashley, from Your Workbook, Has Discovered Another Wine, Wine D

question 30

Multiple Choice

Ashley, from your workbook, has discovered another wine, wine D.Wine drinkers are willing to pay 40 dollars to drink it right now.The amount that wine drinkers are willing to pay will rise by 20 dollars each year that the wine ages.The interest rate is 10%.How much would Ashley be willing to pay for the wine if he buys it as an investment? (Pick the closest answer.)

• A)93 dollars
• B)40 dollars
• C)200 dollars
• D)440 dollars
• E)71 dollars

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Definitions:

Assignment

The transfer of a contract right from one person to another.

Frustration of Purpose

A legal defense allowing parties to terminate a contract when an unforeseen event undermines the contract's principal purpose, rendering it impossible to fulfill.

Doctrine

A belief or set of beliefs held and taught by a church, political party, or other group.

Intention

A psychological state involving a commitment or determination to carry out a specific action or achieve a specific outcome.