Read the following Case then respond to the questions with your understanding

Salem is a customer of Albaraka bank; he requested financing from the bank for five air conditioning units (A/Cs) on a three-year IJARA. The bank purchases the assets and rents them for a period of three years.

Financial details Cost of 10,000 A/Cs Life expectancy of five years; annual depreciation of 2000. Insurance (Takaful) 600. Required return for the bank: Year1 900 Year2 700 Year3 500