FMUC (2022) - Final "Aging Assets"

Description
Financial Modeling World Cup is an annual competition dedicated to financial modeling with a view of promoting healthy competition and education. FMWC challenges participants through a range of different types of questions. To answer everything correctly and win prizes, it takes a broad spectrum of skills and knowledge related to financial modeling. The competition is structured so that each participant accumulates points during the season by participating in as many monthly Stages as they desire. At the end of the season (December), the overall winners are announced and the prize fund is distributed. Additional monthly prize money is distributed to the best-performing participants of each stage.


Aging Assets case was premiered during the FMUC 2022 - Final.


Case description:
You are considering an investment in an asset that requires aging. As the asset ages, it becomes more valuable at a rate of 15% per year. However, aging the asset comes with costs and risks. The asset must be stored at a facility, and insurance must be purchased against a potential accident at the facility (e.g., a fire).
You are considering four potential facilities for aging your asset. Analyze the investment opportunity to determine the optimal facility to use and the optimal timing for selling the asset.



When downloading this case, you will receive an Excel file that includes the case itself, as well as a separate sheet with correct answers.



Please keep in mind that the case does not contain the solution - just the correct answers.


You can also buy tickets to participate in the future MECC at https://www.fmworldcup.com/microsoft-excel-collegiate-challenge/