The intent of the exercise was a bit subtler... You can ALWAYS create a "system" that conforms to some large dollar amount.
Spending well doesn't always mean spending more. Further, combining "parts" doesn't necessarily yield a "system."
Having an idea of what you're trying to create is more often a better route than simply spending more.
While spending $35K on wire for what would ordinarily be a $5K or so system is absurd, it also doesn't mean spending that much for speaker cable with a $150K system is appropriate or necessary either, contrary to what a "typical dealer" might try to tell you.
With the system I put together in the example, the expensive wire was obviously wrong. But, if my intent was to put together a Flat Earth system, the modestly priced NAD and Sony choices are also "wrong." Something like a Linn Ikemi or Naim CD5 would be better choices.
If you're ballparking a $40K budget because you want a specific high priced speaker or amp in the mix, then fine. For example, deciding first that you want Maggies or Sophias would then determine the Amps etc. Alternatively, you might select your sources first, and then back-chain to the power source and then the speakers.
Either way, you will likely be better served by determining an overall system objective and then framing the budget to best meet that objective.