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:

Financial Resources

Refers to the funds that are available to a business or individual for spending in various operations or investments.

Joint Ventures

A business arrangement where two or more parties agree to pool their resources for the purpose of accomplishing a specific task, project, or business activity.

Direct Investment

The purchase or acquisition of a controlling interest in foreign businesses, assets, or properties.

Global Sourcing

The practice of seeking resources, goods, or services from the global market, typically to leverage cost advantages, expertise, or efficiencies.