Question
Brewery Halve Maan launched a crowdfunding campaign to construct an underground pipeline for beer in Bruges. investors are able to take a gold membership for
Brewery "Halve Maan" launched a crowdfunding campaign to construct an underground pipeline for beer in Bruges. investors are able to take a gold membership for which you get one bottle of beer (Brugse Zot Blond) every day for the rest of your life. The gold membership costs 7,500 euro. Assume that the value of one bottle of beer will be 2 euro tomorrow and increases every day due to inflation (2% annual inflation rate). Your discount rate expressed as an EAR is equal to 5%. Assume there are 365 days in one year. If you expect to live for 50 more years, what is the net present value of this gold membership?
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