Optimal duration. Plaid Scotch Ltd. has just kegged its latest Scotch whisky at a cost of $50,000. The whiskys value will increase over the years according to the following formula:
![](https://book.transtutors.com/qimg/d66ae811-5c7e-4831-a404-22445dc8e61a.png)
What is the optimal time of bottling for the Scotch if the firms cost of capital is 15% compounded continuously?