B$1299$E $-$ ENGINEERING ECONOMICSTAKE$-$HOME PROBLEM SET $1.$ Determine the net present value of the following set of cash flows. Assume the discountrate is $9\%.-$t$=0-$t$=3-$t$=4+$$$250+$$$200-$$$100+$$$600-$t$=10-$$$4002.$ Maggie Green just borrowed $$5,000.$ She is planning to pay it back in $5$ equal installmentsof $$1,200.$ What is the IRR? $3.$ Rick Grimes and Daryl Dixon are evaluating an investment in a hydraulic press for a stamping operation. The initial cost of the press is $$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 $$15,000.$ If the company's MARR is $15\%,$ should the partners recommendthis project go ahead? $4.$ In question $3,$ would the recommendation change if the yearly savings were determinedto be $25\%$ higher? $5.$ Winterfell Tool and Die may buy a new milling machine. The engineer has determined thefollowing data:Initial costOperating cost$/$yrSavings$/$yrUseful lifeSalvage value$$15,500$$$7,300$$$11,6005$ yearsNil What is the IRR of this investment? If Winterfell has a MARR of $8\%,$ should this project goforward?$$ Bus $1299$E$,$ Ivey