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Please help it is five part question A,B,C,D,E 700 words for total. Please take your time and make sure you have the correct answer. No

Please help it is five part question A,B,C,D,E
700 words for total.
Please take your time and make sure you have the correct answer.
No plagiarism or copying! please help me with it
image text in transcribed
Your client has just won a lottery of $800,000 (recelved in a single payment). Already financially stable, your client would like to help provide for thelr grand children's future and has decided to invest the $800,000. Your client has Identified two Investment options that they are interested in and would like your advice as to which Investment you belleve they should select. Optlon 1: Involves pleding the $800,000 Into an investment Savings account at the local bank for ten years. This account earns Interest each year for ten years after which time the client could then withdraw their account balance. Option 2: Involves Investing the total of $800,000 Into a vineyard, ($300,000 upfront to plant the grapes and set up the winery, and then $50,000 each year for ten years for picking the grapes and vineyard maintenance). Ten years after the grapes are planted, they cease yielding a commercial quantity of wine and the vineyard is sold to a neighbouring farmer. Method Option 1 - Option 2- Investment Savings Account Winery Business 15.8% 12.4% 6.8 years $81,482 $132,684 $800,000 $300,000 Accounting Rate of Return Payback Period Net Present Value Initial Outlay 10 years a Required (approximately 700 words): a) Explain each method listed above. b) Determine and list the decision rule that applies for each method you need to decide a reasonable number) and include one advantage and one disadvantage of each method, but do not repeat advantages or disadvantages c Review the results individually, compare them with your estimated decision rule and determine whether you can Individually accept the proposed investment option for each method. d) Explain the relationship between risk and retum el Draw an overall conclusion as to whether, based on the 3 methods, you would recommend the client go with Option 1.0 Option 2. Provide a brief Justification for your recommendation Your client has just won a lottery of $800,000 (recelved in a single payment). Already financially stable, your client would like to help provide for thelr grand children's future and has decided to invest the $800,000. Your client has Identified two Investment options that they are interested in and would like your advice as to which Investment you belleve they should select. Optlon 1: Involves pleding the $800,000 Into an investment Savings account at the local bank for ten years. This account earns Interest each year for ten years after which time the client could then withdraw their account balance. Option 2: Involves Investing the total of $800,000 Into a vineyard, ($300,000 upfront to plant the grapes and set up the winery, and then $50,000 each year for ten years for picking the grapes and vineyard maintenance). Ten years after the grapes are planted, they cease yielding a commercial quantity of wine and the vineyard is sold to a neighbouring farmer. Method Option 1 - Option 2- Investment Savings Account Winery Business 15.8% 12.4% 6.8 years $81,482 $132,684 $800,000 $300,000 Accounting Rate of Return Payback Period Net Present Value Initial Outlay 10 years a Required (approximately 700 words): a) Explain each method listed above. b) Determine and list the decision rule that applies for each method you need to decide a reasonable number) and include one advantage and one disadvantage of each method, but do not repeat advantages or disadvantages c Review the results individually, compare them with your estimated decision rule and determine whether you can Individually accept the proposed investment option for each method. d) Explain the relationship between risk and retum el Draw an overall conclusion as to whether, based on the 3 methods, you would recommend the client go with Option 1.0 Option 2. Provide a brief Justification for your recommendation

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