An investor could have bought a case of Chateaux Margaux 1995 as recently as January 2003 for $895 a case. Assume that annual storage costs are 9$ p.a. per case are payable annually in advance each year. What IRR would an investor receive if this case was subsequently sold at auction by Southey's in January 2015, for a hammer price equivalent of $296 a bottle, less their standard 17.5% auction fee?

Answer rating: 100% (QA)

ANS WER The IR R would be 10 8 WORK ING P V 8 95 F V 296 N 12 I Y 10 8 P V F V 1 I Y N 8 95 296 1 10 ... View the full answer