Avinner is deciding when to release a vintage of sauvignon biare ritisbotted indreloasedo.the wire wil be...
A vintner is deciding when to release a vintage of sauvignon blanc. If it is bottled and released now, the wine will be worth $2.4 million. If it is barrel aged for a further year, it will be worth 20% more, though there will be additional costs of $720,000 incurred at the end of the year. If the interest rate is 7%, what is the present value of the difference in the benefit the vintner will realize if he releases...