LD Winery Expects a Demand of 10 000 Bottles Per

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The Answer is Inflows: PMT = $10 000(6.10) = $61 000; P/Y = C/Y = 1; I/Y = 16%; n = 6
PV_IN = 61000

Inflows: PMT = $10 000(6.10) = $61 000; P/Y = C/Y = 1; I/Y = 16%; n = 6 PV<sub>IN</sub> = 61000 = 224 769 PV<sub>OUT </sub>= 200 000 + 8 000 - 10 000 ( ) NPV = 224 769 - 222 090 = $2679<sup> </sup> <sup>Since NPV > 0, the return on the investment is greater than 16%. LD</sup><sup> Winery should invest in the equipment.</sup>

= 224 769
PV_OUT= 200 000 + 8 000 Inflows: PMT = $10 000(6.10) = $61 000; P/Y = C/Y = 1; I/Y = 16%; n = 6 PVIN = 61000 = 224 769 PVOUT = 200 000 + 8 000 - 10 000 ( ) NPV = 224 769 - 222 090 = $2679 Since NPV > 0, the return on the investment is greater than 16%. LD Winery should invest in the equipment.

- 10 000 ( Inflows: PMT = $10 000(6.10) = $61 000; P/Y = C/Y = 1; I/Y = 16%; n = 6 PVIN = 61000 = 224 769 PVOUT = 200 000 + 8 000 - 10 000 ( ) NPV = 224 769 - 222 090 = $2679 Since NPV > 0, the return on the investment is greater than 16%. LD Winery should invest in the equipment.

)

NPV = 224 769 - 222 090 = $2679
^{Since NPV > 0, the return on the investment is greater than 16%. LD}^{Winery should invest in the equipment.}

LD Winery Expects a Demand of 10 000 Bottles Per

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LD Winery Expects a Demand of 10 000 Bottles Per

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