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Question Khalid Al Balushi is the general manager of ABC trading LLC. He has a strong team of outdoor sales. He has hired some new

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Question Khalid Al Balushi is the general manager of ABC trading LLC. He has a strong team of outdoor sales. He has hired some new salespeople in the company and needs to provide them vehicles. He has decided to buy a car for them, and he visited various showrooms to identify the best possible deal for himself. He compared with a different brand, their offers, and schemes. His motive is to buy a car with a good price and a good brand as well. He does not want to pay all the price at once, so he is looking for a down payment and installment payment schemes. He has a limited income for this reason he is trying to find a deal with easy installment payment and less interest rate so he can minimize the overall payment and he may get a preferred car under his budget. One day he visited Ford Motor showroom and found one suitable car as he wants to buy. The lease term period is for 60 months with the first payment due at the inception of the lease. The quoted annual interest rate is 9.5% per annual and you must also make an additional down payment of OMR 1,380. The schemes also say that the residual value of the vehicle is OMR 2,430 payback after five years. After much research, you have concluded that you could buy the car for a total price of OMR 13,800. Considering the over scenario and schemes calculate the monthly installment he will have to pay every month and prepare 5 years amortization schedule that shows the monthly principal and interest amount with the lease, beginning balance, scheduled payment, principal amount ending balance, and cumulative interest. Like below in excel sheet using PMI function PPMT,IPMT PMT Beginning principal interest ending balance cumulative balance interest opening PPMT opening balance principal Number schedule payment PMT IPMT balance 16 Marks) (6 Marks) B. Considering the above scenario, prepare 4 years deprecation schedule that show the yearly deprecation expenses and using following deprecation functions. (4 Marks) a. Double-declining balance method function (DDB function in excel sheet) b. Sum-of-the-years'- digits method function (SYDfunction in excel sheet) C. Straight line method function (SLN function in excel sheet) d. Fixed declining balance method function (DB function in excel sheet) Page 9 of 11

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