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Mr. Bahri, a 47 years old manager received the news that his contract will not be renewed when it ends at the end of 2022.
Mr. Bahri, a 47 years old manager received the news that his contract will not be renewed when it ends at the end of 2022. His cash flows are listed below: Income & Assets (RM) Net income (after deduction of EPF, Sosco 8000 etc.) EPF Savings Fixed Deposits (FD) in bank Other assets (such as shares, trust funds) 700 000 630 000 20 000 SSPN accounts (for 2 kids, each of RM 40 80 000 000) Net worth of house owned Food and household items Insurance for all family members 360 000 Monthly expenses (RM) 2.000 940 House instalments (loan balance RM 65 000 650 and remaining loan period is 10 years by end of December 2022) Car instalments (remaining loan period is 26 500 months by end of December 2022) Expenses for kids Contribution to parents Petrol and car maintenance 100 600 500 Utilities payments (including telco, water, 400 and electricity) L. ii. Analyse (CLO2) and discuss (CLO1) on the cash flow if it is possible for Mr. Bahri to retire at the end of 2022 and financially sustainable until 78 years old. Also, discuss (with justifications/ calculations) on what should you adapt/avoid for your own retirement planning, based on the case study of Mr. Bahri (CLO3). CLOI Discuss conclusion on the principles, basic concepts, and methodology of engineering economy 5% CLO2 Develop proficiency with the engineering economics methods and decisions making 5% CLO3 Evaluate the economic aspects of competing design solutions 5% assume any data that is not provided, e.g. interest rate for alternative investments
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