With cash flow diagram

PROJECT Case Analysis Name: ID: Read the case study below and solve and answer questions 2&3 Case Study-Engineering Economics-Version 1 Background A young Engineer entrepreneur (Marwan) is deliberating whether to purchase an office space or continue to rent for the next 10 years. His consultancy business is flourishing and he is optimistic about the business prospects now that the UAE has managed to win the Expo 2020 He has a total of $60,000 available now and estimates that he can afford up to $3000 per month for the total office payment If Marwan does not buy the office, he will continue to rent the office he currently occupies for $2,800 per month. He will also place the $60,000 into an investment that is expected to earn at a rate of 6% per year. Additionally, he will add to this investment at the end of each year the same amount as the monthly 15-year mortgage payment. This alternative is called Rent-don't buy plan. Information: Two financing plans using fixed rate mortgages are currently available as follows Plan Description 30-year fixed rate of 5.25% per year interest, 10% down payment 15-year fixed rate of 5% r inte 10% down Other information . Price of the office is $440,000 .Taxes and insurance (T&I) are $500 per month Up-front fees (registration, survey, attorney...)are $3000 Any money not spent on the down payment or monthly payment will be invested and receive a return rate of 6% 0.5% per month). Marwan expect to sell the office after 10 years and plan a 10% increase in price that is $484,000 (after all selling expenses are paid). 1. The 30 year fixed rate mortgage (plan A) is anabyzed below. No taxes are considered on proceeds from the savings or investments. Plan A analysis- ar fixed rate loan Amount of money required for closing costs: Down P 10% of $44,000 ont fees (registration, survey, attor 3,000 7,000 Total