Question 1 (20 points: There are group of heat engines that work successively from the same heat source and convert it into mechanical energy. Determine group of heat engines on the basis of the PW method when the MARR is 10 % per year by using the following data. Comment about your result. Investment cost Useful life Market value (EOY 15) Annual operating expenses Overhaul cost EOY Y Overhaul cost EOY) Mechanical Energy (1000 TL) 16000 TL 15 years 2514 TL 1676 TL 419 TL 190 TL Question 2 (40 points): A redevelopment project is planned in the industrial zone of the city. In this case, where immediate investment is required, the expectations from the company that will take over the project are as follows. It should lift existing buildings over a four-year period and invest 3800000 TL in new construction at the end of the fourth year. It will collect all revenues and is expected to pay all expenses for a 10-year period. Meanwhile, all projects and properties will return to the city. Use the following data for the net cash flow values. EOY Net Cash Flow (TL) 500000 800000 100000 3,800,000 838000 858000 878000 898000 918000 938000 10 a) Generate the PW as the interest rate is not given you should determine whether multiple IRRs exist. b) According to the result that you obtain in part (a), check if there exist multiple IRR; then use the ERR method. In this part, to evaluate the external rate of return you should use E= 5% per year. Question 3 (40 points): Bigdogan Company is a distributor of agricultural products. There are mutually exclusive alternatives to enhance the quality and quantity of the agricultural products through Smart Agriculture Technologies. One of these alternatives must be selected. The estimated cash flows for each alternative are as follows: Alt. A Alt. B Capital investment Annual expenses Market value (MV) at end of useful life Useful life 3800 700 1,000 5 years 48000 6000 4,000 10 years a) Which "Smart Agriculture Technologies alternative should be selected? The firm's MARR is 20% per year. Assume the study period is shortened to five years. b) The market value of Alternative B after five years is estimated to be $15,000. Which alternative would you recommend