You are the owner of a rare bottle of wine valued at $332. There are no costs associated with storing or selling the wine. Next year you expect the wine to increase in value to $350. If the interest rate is 10 percent
A) you should sell the wine today.
B) you should keep the wine for at least one more year.
C) you are indifferent between selling the wine today and holding it for one more year.
D) more information is needed to answer this question.
A
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