You are working in an Accounting, Finance and Business Advisory company as an investment advisor. In this profession you are required to use numerous statistical data to advise your clients according to their individual circumstances and preferences. One of your clients (your trainer and assessor) wants to make an investment of $ 1,000,000. The options your client is considering to make the investment are as follow:

Making investment in Australian shares

Buying a caf for $1,000,000 that will have a turnover of $ 450,000 and net profit of $18%.

Buying a household goods retailing store having turnover of $1.2 million and net profit of 10%.

Buying a departmental store having turnover $ 1.8 million and net profit 4%.

Before making investments, your client wants to find out the best option where he can invest his money to get maximum returns.

Scenario 1: Investment in Australian Shares (option a)

ASX Ordinary Indexes reflects the trends in Australian share market. Numerous data can be used form ASX website to analyse Australian shares

Scenario 2: Buying a Caf (option b)

In current prices, the trend estimates for Cafes, restaurants and takeaway food services fell 1% in 2017 and continue to fall by 1% in 2018 and then there will be a rise by 2% per year for next 4 years.

Scenario 3: Buying a retail store for household goods (option c)

In current prices, the trend estimates for Household goods retailing fell 2% in 2017 and continue to fall by 2% in 2018 and then there will be a rise by 5% per year for next 3 years.

Scenario 4: Buying a Departmental store (option d)

In current prices, the trend estimates for Department stores fell 0.5% in 2017 and continues to fall by 1% until the end of 2019 and then there will be a rise by 2.5% per year for next 3 years.

Using the Ordinary indexes for the investment in shares (option a), predict what will be the average return per year will be on your clients investment for five years year ending December 2022. Assuming that the client invested the returns (profits) for the initial two years but not for next three years?

Based on information given above, forecast the average rate of return for the year ending December 2022 for option (b), (c) and (d). You can interpret the relevant industry graphs and information given above. Using these graphs, estimate the percentage of growth?

The client invested the returns (profits) for the initial two years but not for next three years. Calculate, what will be the clients investment be worth in December 2022 for each investment option?

Make comparison on the results from scenario (a) and scenarios (b,c,d) using appropriate graphs to make comparisons on the results and advise client for the best investment.