A vintner is deciding when to release a vintage of sauvignon blanc. If it is bottled and released​ now, the wine will be worth million. If it is barrel aged for a further​ year, it will be worth ​% ​more, though there will be additional costs of 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 the wine after barrel aging it for one year or if he releases the wine​ now?.



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