Answer question 5-8 please?

B1299E - ENGINEERING ECONOMICS TAKE-HOME PROBLEM SET 1. Determine the net present value of the following set of cash flows. Assume the discount rate is 9%. -t=0 +$250 -t=3 +$200 -t=4 $100 -t=7 +$600 -t=10 $400 2. Maggie Green just borrowed $5,000. She is planning to pay it back in 5 equal installments of $1,200. What is the IRR? 3. Rick Grimes and Daryl Dixon are evaluating an investment in a hydraulic press for a stamping operation. The initial cost of the press is $400,000 and is expected to have a useful life of 10 years. Maintenance costs will be $20,000 per year. The hydraulic press will also increase stamping output and reduce labour; saving the company $10,000 in the first year, $30,000 in year 2, and $75,000 in each subsequent year. The equipment has a salvage value of $15,000. If the company's MARR is 15%, should the partners recommend this project go ahead? 4. In question 3, would the recommendation change if the yearly savings were determined to be 25% higher? 5. Winterfell Tool and Die may buy a new milling machine. The engineer has determined the following data: Initial cost $15,500 Operating cost/yr $7,300 Savings/yr $11,600 Useful life 5 years Salvage value Nil What is the IRR of this investment? If Winterfell has a MARR of 8%, should this project go forward? Bus 1299E, Ivey 6. Walter White, P.Eng. is a process engineer at a large automotive supplier. He has been charged with evaluating the assembly of clamps on rubber hoses. He has narrowed it down to two options: Initial Cost Annual Cost Useful Life Salvage Value The Hoser $5,000 $3,000 5 years $1,000 The Clamper $6,000 $2,500 6 years $1,000 If the cost of capital is 15%, which is the better option? 7. Tropical Banana Computers (TBC) has long used a criteria that all investments should have a payback period of less than 5 years. A proposition has recently been put forward that would generate the following set of cash flows: Initial cost $100,000 Yr 1 net revenue $20,000 Yr 2 net revenue $20,000 Yr 3 net revenue $20,000 Yr 4 net revenue $30,000 Yr 5 net revenue $30,000 Using TBC's criteria, would you recommend the project go forward? If the opportunity cost is 15%, would you accept or reject? Why would there be a difference? 8. Audrey Raines, P.Eng. is a project engineer at an electronics company. She is evaluating replacing one of the plant's manual assembly lines with automated equipment. The project is expected to cost $500,000 but will have savings of $100,000 per year in labour and $20,000 per year due to quality improvements. If the company's MARR is 8% and the project's life is 6 years, what is the external rate of return? Should Audrey go ahead with this project? Bus 1299E, Ivey