What is the difference in the benefit vintner will realise

Reference no: EM13273669

A vintner is deciding when to release a vintage of pinot gris. If it is bottled and released now, the wine will be worth $2.2 million. If it is barrel aged for a further year, it will be worth 20% more, though there will be additional costs of $500,000. If the interest rate is 7%, what is the difference in the benefit the vintner will realise if he releases the wine after barrel aging it for one year, or if he releases the wine now?

Reference no: EM13273669

Questions Cloud

Determine the magnetic field at the surface of the wire : A 2.5 mm diameter copper wire carries a current of 33 A, uniformly distributed across its cross-section. Determine the magnetic field at the surface of the wire

How much is the outstanding principal balance on his loan : APR with monthly payments. After he has made the first 20 payments, how much is the outstanding principal balance on his loan?

Find expression for the scalar electric potential v : The upper half-space (where the line charge resides) is characterized by permittivity epsilon_1, and the lower half-space has permittivity epsilon_2. Find expression(s) for the scalar electric potential V(x,y) everywhere.

What is the annual loan payment dan must make : Dan buys a property for $250,000. He is offered a 20-year loan by the bank, at an interest rate of 6% per year. What is the annual loan payment Dan must make?

What is the difference in the benefit vintner will realise : If the interest rate is 7%, what is the difference in the benefit the vintner will realise if he releases the wine after barrel aging it for one year, or if he releases the wine now?

What roles do you think the federal reserve played : What roles do you think the Federal Reserve played in the manipulation of prime rates that may have partially contributed to the failure of the U.S. banking system in 2008?

What are the best and worst case npvs with these projections : What are the best and worst case NPVs with these projections?

Determine the vector e at an arbitrary point in free space : Two infinite lines of charge, each carrying a charge density l, are parallel to the z-axis and located at x = 1 and x = -1. Determine the vector E at an arbitrary point in free space along the y-axis.

Plan for recruiting and training correctional staff : Make revisions to Assignment 2 based on your professor's feedback and provide an introduction to your position paper with a clear thesis statement that provides an overview of the paper.

User Account

All Pages