According to the cost of funded risk retention, the data for Astaka Berhad.are as follow :

 

The property value is  RM2,000,000 and the expected loss for the property is RM40,000.The maximum loss for the property similar as the property value and the risk was RM980,000. If the investment return of the company was 16%, and the bank interest was 8%.

You are required to calculate : 

i          Cost of financing loss

ii         Cost of financing risk

iii        Cost of retention