You are planning to invest in fine wine. Each case costs $80, and you know from experience that the value of a case of wine held for t years is $100sqrtT. One hundred cases of wine are available for sale, and the interest rate is 10 percent. How many cases should you buy, how long should you wait to sell them, and how much money will you receive at the time of their sale? You should

A. buy all 100 cases of wine and sell them in 5.00 years, receiving $55.86 at the time of the sale.

B. buy all 100 cases of wine and sell them in 5.00 years, receiving $223.61 at the time of the sale.

C. buy all 100 cases of wine and hold them indefinitely.

D. buy none of the wine.

E. buy all 100 cases of wine and sell them immediately for $100.

Suppose that at the time of purchase, someone offers you $200 per case immediately. Should you take the offer?

ou should take /not take the offer.

How would your answers change if the interest rate were only 5 percent?

If you buy the wine, then the optimal time to sell would be after _____ years.(Enter a numeric response rounded to two decimal places.)

In turn, the net present value when buying the wine and then selling after 10.00 years would be $____per case.

Therefore, you should not buy/ buy the wine to be resold in 10.00 years.

Furthermore, if someone offers you $200 per case immediately, you should take/not take the offer.