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Q2. Case Study: The customer owns a piece of land and wishes to build a high-rise office structure. Feasibility study shows the proposed building would
Q2. Case Study: The customer owns a piece of land and wishes to build a high-rise office structure. Feasibility study shows the proposed building would net an annual rate of profit of 20 percent per year. Building will cost AED 150 million in two years. Payment in installment tied to eight stages of construction each lasting six months, required. The customer demands delivery on time and a firm commitment from the bank to be punctual. The net cash inflows permit a monthly installment of AED 2.5 million. This enables the customerto repay over 5 years. Required: Configure alternative structures for financing, using the following options: Murabah Ijarah Muntahia Bittamleek Musharaka Mutanaqisa Q2. Case Study: The customer owns a piece of land and wishes to build a high-rise office structure. Feasibility study shows the proposed building would net an annual rate of profit of 20 percent per year. Building will cost AED 150 million in two years. Payment in installment tied to eight stages of construction each lasting six months, required. The customer demands delivery on time and a firm commitment from the bank to be punctual. The net cash inflows permit a monthly installment of AED 2.5 million. This enables the customerto repay over 5 years. Required: Configure alternative structures for financing, using the following options: Murabah Ijarah Muntahia Bittamleek Musharaka Mutanaqisa
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