Consider a wine maker who has put her wine in bottles. The question is whether to store the wine for a marginal cost of $1 per year or to sell the wine today at a price of $10
If the interest rate is 6%, how much must the price of the wine increase in the next year to justify storing it? A) $1.66
B) $1.27
C) $0.72
D) $0.45
A
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