b) James wishes to invest his TZS 50,000,000 in one of the UTT Products to boosthis future income. According to the available information, Umoja Fund and Bond Fund are the most attractive investment products compared to the other four UTT products. The following information is also available regarding the two products

	Products
Details	Umoja Fund	Bond Fund
Net Asset Value (TZS)	285,837,648,877.52	202,502,972,596.22
Total Units issued	346,139,632.08	1,788,596,864.54
Market Price per Unit (TZS)	743.2072	113.2189
Initial Costs (% of the value of investment)	10%	5%
Annual Management Costs (% of the value of the fund) 2%	2%	1%
The average rate of Return	10%	7%

You are a market expert, and James has approached you to facilitate him in understanding the above product to enable him to make such an investment decision. Required: With relevant calculations, advise James in each of the below scenarios: i. James is a long term investor and wants to invest in an investment which will provide high value in 20 years' time. If Umoja Fund is subject to an annual tax of 20% and Bond Fund is subject to a deferred tax of 30%, which of the two products is the best for James? [6 Marks] ii. James has obtained insider information that UTT is expecting to buy back 20% of existing Umoja Fund units in six months time. If the discount/premium remains the same after the buyback, compute the new Net asset Value per share, New Market Value per share and advice James on whether he should buy the Units now or wait after the buyback exercise is complete. [8 Marks]