Gordon has a goal of purchasing a new second hand car valued at approximately $14,000 financed from the returns generated on his investments over the next 12 months. He currently has approximately $150,000 available for investment and wishes to select any one of the following alternative investments in order to realise his goal: Expected Income return (% p.a.) Details 1 year unsecured bank note 10 1 bedroom rental property 4 Shares in Australian bank 3 Expected Capital return (% p.a.) 0 8 12 Ignore the effects of taxation in your calculations. (a) Calculate the expected amount of income and capital generated by each investment over the next 12 months (b) Rank the investments in the order of their total return (expressed as a dollar amount) from the highest to the lowest

Akeem Joffer hopes to a new cabin on Webb Lake in Maine. Akeem has $13,000 saved today and wants to save $7,000 every year for the next nine years. Assume Akeem can earn 11% on his investments. Compute the amount Akeem expects to have available to purchase the cabin in 9 years. 5. Reggie Hammond has $300,000 in cash located in a suitcase in the trunk of his car.Reggie deposits this amount in Gibraltar Bank. The bank offers a 6.7% annual rate and pays interest quarterly. Reggie hopes to have $1,600,000 at the end of five years. Compute the quarterly savings Reggie must deposit into this account in order to achieve his goal. 6. Billy Ray Valentine promises to pay his friend Louis Winthorpe a deferred annuity of $60,000 beginning in year five and continuing through year eleven plus a three-year deferred annuity of $7,000 that begins in year 15. Interest rate is 8.2 % . Compute the amount Billy Ray needs today to fulfill his obligation to his friend

ames is starting to take his financial future seriously after studying finance at university. He is currently 25 years of age and wishes to retire from full-time work at the age of 55 with $2 000 000 in savings.    b) How much will James need to contribute at the start of each month in order to receive $2 000 000 in 30 years’ time at a compound interest rate of 7.25% p.a.?  Show formula, variables, calculation and a concluding statement in your response.

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Bruce is considering the purchase of a restaurant named Hard Rock Hollywood. The restaurant is listed for sale at $1,030,000. With the help of his accountant, Bruce projects the net cash flows (cash inflows less cash outflows) from the restaurant to be the following amounts over the next 10 years:     Years Amount   1-6 $ 83,000   (each year) 7   93,000     8   103,000     9   113,000     10   123,000         Bruce expects to sell the restaurant after 10 years for an estimated $1,130,000. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Round your answer to 2 decimal places.)Required:1-a. Calculate the total present value of the net cash flows if Bruce wants to make at least 10% annually on his investment. (Assume all cash flows occur at the end of each year.)       1-b. Should he purchase the restaurant?