Should we not break even ca. in Y12?

Question

Hello,

the case question is “to earn enough money with the “investment” section of the cellar in order to subsidize whatever I consume in the “drinking” section over time”.

So, I understood that we should find the number of investment bottles, where our revenues just compensate the costs in the long run. This number equals 40 investment bottles in the long run.

Thus, I would buy 72 investment bottles in the first 7 years and then switch to 40 investment bottles in the following years. Therefore, I would break even ca. in Y12.

Did I make a mistake?

Best,

Daniel

Answer 1

Daniel, I'm sorry to see that this question was left unanswered. I believe it's because we find it difficult to understand the scope of the problem here.

I would recommend that you provide more granular details and some screenshots and then repost this question. I am happy to take a look at it again, then.

Best,
Cristian