Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please answer this Asap Thank you! Fatima owns land and plans to build a small factory to produce imitation jewellery. She needs financing for the

Please answer this Asap Thank you!
image text in transcribed
image text in transcribed
Fatima owns land and plans to build a small factory to produce imitation jewellery. She needs financing for the construction of this factory and has signed an Istisna contract with Turki Islamic Bank (TIB). The bank has contracted Turkish Construction (TC) for the job. The details included in the Istisna and parallel Istisna contract are: Construction cost at actuals of the factory (Turkish lira) TRL 1,000,000 Financing period 10 years 1 Repayment quarterly instalments Detailed specifications of the asset - jewellery factory TIB profit margin 8% of construction cost ITC will take 6 months to build the factory ITC profit margin also 6% of construction cost ITC requires downpayment of 10% of construction cost at contract 1 Balance 60% payment to TC in six equal instalments over the 6 months of construction. Final 30% at delivery a. What is the price at which the TIB will buy the factory from TC? b. What is the price at which the TIB will sell the factory to Fatima? c. How much downpayment will the TIB pay to TC? d. How much will be each instalment paid during construction to TC? e. How much will the TIB pay TC at delivery? f. What will be the instalment amount that Fatima will pay each quarter to the f. What will be the instalment amount that Fatima will pay each quarter to the TIB over the 10 years

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The New CFO Financial Leadership Manual

Authors: Steven M. Bragg

3rd Edition

0470882565, 978-0470882566

More Books

Students also viewed these Finance questions

Question

22. Compute the expected value of the random variable in Problem 3.

Answered: 1 week ago

Question

What steps should be taken to address any undesirable phenomena?

Answered: 1 week ago