Question: The Al-Majid Construction Management Company constructs and operates different communities in certain parts of UAE. The past few years have been difficult ones for

The Al-Majid Construction Management Company constructs and operates different communities in certain parts of UAE. The past few years have been difficult ones for Al-Majid facility management company. The demand for Al-Majid Construction Management has been light and the company has been unable to maintain full occupancy. However, Al-Majid Construction management has recently broken ground for the construction of a new community and has more new construction planned over the next 4 years (2022 through 2025). The chief financial officer (CFO) at Al-Majid Construction Management Company, has projected Al-Majid's net cash flows over the next 4 years as shown in the table below, Al-Majid will have negative cash flow for the next few years. With only $1 million in cash reserves, it appears that AL-Majid will need to take out some loans in order to meet its financial obligations. The main objective is to Mmaximize cash-balance position in 2025, considering the below Financial Parameters: calculate the ending balance of 2022 and 2023. . . . Long Term 5-Year (LT) Loan: 5% interest rate. Short Term 1-Year (ST) Loan: 7% interest rate. 2022 long term loan of 6m & short term loans of 2 m 2023 long term loan 5m Year 2022 2023 2024 2025 Projected Net Cash Flow (Millions of AED) -8 -2 -4 3 Note: You need to present the how you calculate the ending balance for each Year using the below formula: Ending Balance Starting Balance + Cash Flow + Loans Interest Payments - Loan Payments

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