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Please help it is just (B), I need the answer for only B 150 words! please I would like to have the perfect answer, so
Please help it is just (B), I need the answer for only B 150 words!
Your client has just won a lottery of $800,000 (received in a single payment). Already financially stable, your client would like to help provide for their grand children's future and has decided to invest the $800,000. Your client has identifled two Investment options that they are interested in and would like your advice as to which Investment you believe they should select. Option 1: Involves placing 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 nelghbouring farmer. Method Option 1 - Option 2- Investment Savings Account Winery Business 15.8% 12.4% Accounting Rate of Retum Payback Period 10 years 6.8 years $132,684 Net Present Value Initial Outlay $81,482 $800,000 $300,000 Required (approximately 700 words): 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 please I would like to have the perfect answer, so take your time
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