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adell [148]
3 years ago
12

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 10% more, though there will be additional costs of $360,000 incurred at the end of the year.
If the interest rate is 7%, what is 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?
Business
1 answer:
ziro4ka [17]3 years ago
3 0

Answer:

$269,158.88

Explanation:

The computation is shown below:

Before the difference of the amount, first we have to determine the value of the wine after one year which is shown below:

= $2,400,000 + $2,400,000 × 10%

= $2,400,000 + $240,000

= $2,640,000

And, the interest rate is 7%

Plus the additional cost is $360,000

So, the value of the wine now is

= ($2,640,000 - $360,000) ÷ (1 + 0.07)

= $2,130,841.12

So, the difference is

= $2,400,000 - $2,130,841.12

= $269,158.88

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7 0
3 years ago
The Math department also purchased a printer. After 4 years, it will have a salvage value of $200. A new printer is expected to
Aleksandr [31]

Answer:

determine the size of payments.

$202,42

Explanation:

Expected cost              2000

Salvage value old printer 200

         Cost requirement        1800

 

FVOrdinary Annuity​=C*(1+i)n-1/i  

1800=c*(1+3%)>8-1/i  

C=202,42  

N Monthly            % VF

0 202,4214999 1,00 202,42

1 202,4214999 1,06 214,57

2 202,4214999 1,12 227,44

3 202,4214999 1,19 241,09

4 202,4214999 1,26 255,55

5 202,4214999 1,34 270,89

6 202,4214999 1,42 287,14

7 202,4214999 1,50 304,37

6 0
3 years ago
At December 31, 2011 the accounting records of Gordon, Inc. contain the following items: If the Notes Payable is $10,000, the De
Vadim26 [7]

The question is incomplete. The complete question is as follows,

At December 31, 2011 the accounting records of Gordon, Inc. contain the following items:

Accounts Payable 2500

Land 30000

Building 31250

Notes Payable ?

Retained earnings 125000

Accounts Receivable 18750

Cash ?

Equipment 40000

Capital Stock 12500

If the Notes Payable is $10,000, the December 31, 2011 cash balance is:

Answer:

Cash = $30000

Explanation:

The accounting equation states that the sum of total assets is always equal to the sum of total liabilities plus total equity. We can state the equation as follows,

Total Assets = Total Liabilities + Total Equity

So,

(30000 + 31250 + 18750 + 40000 + Cash) = (2500 + 10000) + (125000 + 12500)

120000 + Cash = 12500 + 137500

Cash = 150000 - 120000

Cash = $30000

6 0
3 years ago
Juniper Company uses a perpetual inventory system. The company purchased $9,750 of merchandise on August 7 with terms 1/10, n/30
MatroZZZ [7]

Answer:

b) Debit Accounts Payable $8,250; credit Merchandise Inventory $82.50; credit Cash $8,167.50

Explanation:

Preparation of correct journal entry to record the payment on August 16

Based on the information given we were told that the company made a purchased of the amount of $9,750 of merchandise with terms of 1/10 and as well made returned of the amount of $1,500 worth of the merchandise while the full amount due was paid on August 16 which means that the journal entry to record the payment on August 16 will be :

Debit Accounts Payable $8,250

($9,500-$1,500)

Credit Merchandise Inventory $82.50

(1%×$8,250)

Credit Cash $8,167.50

[(100%-1%)×$8,250)]

3 0
3 years ago
Why is the subject line of a business email important
Airida [17]

Answer:

The subject line often determines whether an email is opened and how the recipient responds. An email with a blank subject line will likely get deleted, lost, or immediately irritate the recipient, who is forced to open the email to figure out what it's about.

5 0
2 years ago
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