Question 1 Under the principles of engineering economy, the 7-step systematic principles of engineering economic analysis technique are given as: i. Identify the investment alternatives. ii. Focus on the differences. iii. Use consistent viewpoint iv. Use common unit of measure. vi. Consider all relevant criteria. vii. Make uncertainty explicit. viii. Revisit your decision The management team of a small furniture manufacturing company is under pressure to increase profitability in order to get a much needed loan from the bank to purchase a more modern pattern cutting machine. One proposed solution is to sell waste wood chips and shavings to a local charcoal manufacturer instead of using them to fuel space heaters for the company's office and factory areas. (a) Define the company's problem and reformulate the problem using the 7-step systematic principles of engineering economics. (b) Develop at least one-potential alternative for your reformulated problems in part (a). (30marks) Question 2 (a) Explain the Least Common Multiple in engineering economic. (b) Based on the data given in the table below, which equipment should be chosen on the basis of its present worth analysis? Use an interest rate of 11% per year. Criteria Machine 1 Machine 2 Initial cost (P) 10,000 15,000 Annual operating cost (AOC) 4,500 4,100 Useful life in years (n) 6 9 Salvage value at the end of life (SV) 2,000 3,000 Marks) 20 (20