Question: Problem 5 (20 points) An engineering firm invests $100,000 at time zero and $200,000 at the end of year one in an engineering project. Starting

 Problem 5 (20 points) An engineering firm invests $100,000 at time

Problem 5 (20 points) An engineering firm invests $100,000 at time zero and $200,000 at the end of year one in an engineering project. Starting from the end of the third year, the engineering project generates a benefit A per year. At the end of the 14th year, the investments are fully recovered. The interest rate is 2.18% per month. (A) What is the nominal interest rate per year (r) ? (B) What is the effective interest rate per year (ia) ? (C) Calculate A. (D) Draw the cash flow diagram for the engineering project

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