q J. alllJll 11-1 - Borrowing money for investment purposes, Negative Gearing Scenario re Jenevieve .Jenevieve just finished her combined Economics and Finance degree and graduated with 1t class honours. She had purposely set her career in a direction that she saw would be financially rewarding. She wanted to be well paid for her industry, and enjoy her work and take up new opportunities. She was so excited she had just been offered employment with an International Bank occasioning her to move to Sydney. .Jenevieve started to think about how she might maximize an investment opportunity using money from the bank. With exams just completed and having crossed the nishing line on getting a great job, the thoughts from her studies started buzzing in her head. She wrote them down. analysed them and quickly drew up an investment plan. The plan was based around 3 important facts that Jeneweve: [1} would be earning $90300 income pa [2} had only a small deposit of $2,IDD saved [3} at the interview her employer promised she would receive favourable nancing terms a low deposit and low interest bearing loan. Required Outline what you think Jenevieve's investment plan options might be and what investment opportunities she might take up. In your analysis, make sure you reference the Income Tax Law. NB: the purpose of this question is to understand what negative gearng is and compare how it applies to rental property purchases and share purchases. [Ignore investing in a business as an option.) Develop your overarching strategy by considering what yields the best investment return. Focus on high level taxation issues eg old vs new rental property, fully franked dividends vs nondfranked dividends. It is not necessary to specifically identify the exact rental property or exact shares that you think Jenevieve should purchase