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Avinner is deciding when to release a vintage of sauvignon biare ritisbotted indreloasedo.the wire wil be worth S22 in .ute-t-benn isi mot high ree an bo additional oosts of S495,000 ncurred at the end of the year if the interest rate is 7%.what is the preset value cree dhmce n re been re wwe wil malalhei ha trwovny OO year or if he releases the wine now? O A. He will earn $298,131 more ifhe releases the wine now ○ B. Hewal onrn S23 1,000 rnon.he roleases the wine row O C. He will earm $1,650,000 less if he releases the wine now OD, He will oarn $165,000 loss ส he releases the wine now
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Answer is highlighted in yellow: Solution: A. He will earn $298,131 more if he releases the wine now Answer: Explanation: Pesent value of Future benefit (2200000*115%)*0.93458 Present value of Incremental cost Plus present benefit (495000 0.93458)+(2200000)2662617 Incremental Benefit if releasing the wine now 2364487 298130 Due to roudning of PV factor.

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