Question: ( a ) The initial outlay for a process engineering project is $ 1 0 , 0 0 0 . For the following five years,

(a) The initial outlay for a process engineering project is $10,000. For the following five years, the project is anticipated to produce a cash flow of $2,500 annually. The Bank's nominal interest rate is 8% per year, compounded annually. However, the bank levies a processing fee equal to 2% of the initial investment. Calculate the effective rate of Interest ?
(b) Define Annuity.
( a ) The initial outlay for a process

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