I answered all these queries by email to Joel but for the benefit of everyone else.
To buy off the Tier penalty, it is 1 PEP per 5 penalty, so that is 8 extra PEP for the Tier 5, followed by another 6 to buy off the Tier 4 effect. So 14 extra PEP to eliminate penalty
(see example page 201 and rules above it)
"There are three other limits:
characters cannot expend more psionic energy than they currently
possess, characters may not use more extra Psi Energy Points to
boost an activation than they have skill ranks in the Discipline, and
characters cannot combine using extra Psi Energy Points with the
use of Mental Focus (see below). In the event an activation using
extra Psi Energy Points is fumbled, add the number of extra PEPs
used to the roll on the fumble".
For physical attacks, you need to get your range by Tiered effects. (Think spells - there's no range penalty on a lightning bolt but there's a range cap).
Highest Tier determines PEP cost (see Psi Energy Cost and Extra Psi Energy) so in your example Tier 5 is highest so 5 PEPs
All effects count towards the penalties
so Huge Crit Tier 5 is -40
Tier 3 range -20
Tier 3 targets -20
so -80 penalty already
Best wishes,
Nicholas