Management at Kentucky Tears Distillers, Inc., (KTDI) wants to introduce its new premium libation, Ancient Tears Single Barrel Reserve, and has asked you to determine the optimal age at which it should be bottled and sold. The minimum age at which it can be sold is two years, and the maximum age at which it can be sold is twelve years. KTDI 3 just distilled and barreled 500 barrels of the future Ancient Tears Single Barrel Reserve. Management believes that the following table accurately reflects the selling price per bottle and the number of bottles per barrel that it will realize as a function of aging. KTDI's cost of capital for this project is 12.5% per year. Required: A. At what age should KTDI bottle Ancient Tears Single Barrel Reserve? B. What is the value of KTDI's option to wait to bottle and sell Ancient Tears Single Barrel Reserve? C. At what age should KTDI bottle Ancient Tears Single Barrel Reserve if it costs $25 per barrel per year to store the barrels as they age? Management at Kentucky Tears Distillers, Inc., (KTDI) wants to introduce its new premium libation, Ancient Tears Single Barrel Reserve, and has asked you to determine the optimal age at which it should be bottled and sold. The minimum age at which it can be sold is two years, and the maximum age at which it can be sold is twelve years. KTDI 3 just distilled and barreled 500 barrels of the future Ancient Tears Single Barrel Reserve. Management believes that the following table accurately reflects the selling price per bottle and the number of bottles per barrel that it will realize as a function of aging. KTDI's cost of capital for this project is 12.5% per year. Required: A. At what age should KTDI bottle Ancient Tears Single Barrel Reserve? B. What is the value of KTDI's option to wait to bottle and sell Ancient Tears Single Barrel Reserve? C. At what age should KTDI bottle Ancient Tears Single Barrel Reserve if it costs $25 per barrel per year to store the barrels as they age