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Musharaka with Profits Assume the following: A company is importing and selling Mercedes cars. An Islamic bank invests US$8 million for an 80% profit share.

Musharaka with Profits

Assume the following:

A company is importing and selling Mercedes cars.

An Islamic bank invests US$8 million for an 80% profit share.

An investor invests US$2 million for a 20% profit share.

The investor is to be paid a 10% management fee as percentage of profit after expenses.

Assume:

Sale proceeds = US$12,400,000

Expenses = US$200,000

Calculate:

The total return to the bank?

The total return to the investor?

please provide an accurate and step-by-step answer.

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