Question:

ABC Co' will purchase machinery from XYZ Co' costing $20 million and has requested an Islamic Bank for diminishing Musharakah facility of $14 million. Based on the following details, provide suggested solutions to the questions at the end.

Required:

1.Name the contracts used in this financing facility through diminishing Musharakah.

2.Write the process flow of diminishing Musharakah financing facility for the purchase of this machinery.

3.Compute the values required in the table 1.

4.Prepare an payment schedule for the given transaction using table 2.