Instructions If money is worth 2% per quarter, compounded quarterly, which option would you recommend that Brent exercise? P6-6 (L05) (Purchase Price of a Business) During the past year, Stacy McGill planted a new vineyard on 150 acres of land operation. that she leases for $30,000 a year. She has asked you, as her accountant, to assist her in determining the value of her vineya The vineyard will bear no grapes for the first 5 years (1-5), In the next 5 years (6-10), Stacy estimates that the vines will bear grapes that can be sold for $60,000 each year. For the next 20 years (11-30), she expects the harvest will provide annual revenues of $10.000. But during the last 10 years (31-40) of the vineyard's life, she estimates that revenues will decline to $9,000; during the $80,000 per year During the first 5 years, the annual cost of pruning, fertilizing, and caring for the vineyard is estimated at years of production, 6-40, these costs will rise to $12,000 per year. T Assume that all receipts and payments are made at the end of each year he relevant market rate of interest for the entire period is 6%