What is the difference in the benefit vintner will realise

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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

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