Calculation of number of wine bottles in Year 5

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Calculation of number of wine bottles in Year 5

Oliver Wyman case: Setting up a Wine Cellar

New answer on Feb 07, 2023

2 Answers

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Anonymous A asked on Feb 06, 2023

Hi Team,

In Year 5, why aren't we considering the sale of 120 bottles (investment cellar in Year 0)? Instead, we are including these 120 bottles along with the 72 bottles from Year 1, in Year 6 sale calculation, why is this so? I would like to understand the logic behind the same.

Thanks in advance!

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Hagen

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replied on Feb 07, 2023

#1 Bain coach | >95% success rate | interviewer for 8+ years | mentor and coach for 7+ years

Hi there,

I would be happy to share my thoughts on it:

It seems like in the case study, the initial investment is considered to be made in year 0, and as a result, the sale of 120 bottles takes place after 5 years, i.e., in year 5.

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Hagen

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Answer 2

Ian

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replied on Feb 07, 2023

Hi there,

As the case states, you are selling the 120 initial investment in year 5!

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Calculation of number of wine bottles in Year 5

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