Financial Analysis

LP02 Assignment: Financial AnalysisNameCourseTutor’s NameDateLP02 Assignment: Financial AnalysisThe first application of the inherited $1 million dollars (tax-free) is to eliminate liabilities from my personal balance sheet. The rationale for prioritizing payment of liabilities is thatsome of the debts attract interest payments and therefore immediate payment will save on interest cost. The second reason for prioritizing liabilities is to improve my personal balance sheet. Credit cards and personal loans will take $2,900 and home improvement loan will take $50,000. Mortgage for house, vehicle, and student loans will take up a total of $232,000 from a long lost relative. Total liabilities paid off will take $232,000 leaving $715,000 available for investment.The guideline in consideration of future investment the principle of a reasonable, regular, and predictable cash income, which is counter balanced by growth in invested funds. The requirement for a regular cash income and capital growth in the long-term may not be found single investment therefore it is be necessary to split the investment into retirement fund, money market fund and fixed asset investment CITATION Kru07 \l 7177 (Krunthai Bank Public Company Limited,