This question was answered on Mar 19, 2015. View the Answer You own a large collection of fine wines. You now decide that you must liquidate this valuable assets. However, you predict that the value of your collection must liquidate this valuable asset. However, you predict that the value of your collection will rise in the next few years. The following are your estimates:
Year Estimated Value
Today 70,000
1 88,000
2 104,000
3 119,000
4 132000
5 142000
6 150000
If you assume your cost of capital to be 10% , when should you sell your collection to maximize your NPV?