Question
Assume that a client wants to make an investment of $ 800,000. The options viable to make the investment are as follow: a.Making investment in
Assume that a client wants to make an investment of $ 800,000. The options viable to make the investment are as follow:
a.Making investment in Australian shares
b.Buying a caf for $800,000 that will have a turnover of $ 450,000 and net profit of $18%.
c.Buying a household goods retailing store- having turnover of $1.3 million and net profit of 9%.
d.Buying a departmental store having turnover $ 1.6 million and net profit 5%.
Before making investments, the investor wants to find out the best option where he can invest his money to get maximum returns.
Consider the following scenarios:
a.The client's business will follow the industry trends from September 2017 for option (b), (c) and (d). The data statistics are as follow:
1.Option (b)
In current prices, the trend estimates for Cafes, restaurants and takeaway food services fell 0.1% in September 2017. The seasonally adjusted estimate rose 0.3%. By industry subgroup,
the trend estimate fell for Takeaway food services (-0.1%) and was relatively unchanged for Cafes, restaurants and catering services (0.0%). The seasonally adjusted estimate rose for Cafes, restaurants and catering services (0.6%) and was relatively unchanged for Takeaway food services (0.0%).
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started