Answer each of the following questions, which are independent from each other.

For all time value of money calculations, use time value of money factors with at least 4 decimal places and do not round intermediate calculations; instead, only round your final answer to the nearest whole number.

1. What is the cash payback period on Model DQT (rounded to two decimal places)?

2. What is the cash payback period on Model MK6 (rounded to two decimal places)?

3. What is the net present value of Model DQT?

4. What is the net present value of Model MK6?

5. You recently purchased a new home for $275,000 by agreeing to make annual payments for 15 years; if the interest rate on your loan is 4 percent, what is the total amount of interest you will pay over the life of the loan?

Speedy Delivery Company is considering two different machines for use in its sorting facility and the company's management put together the following cash flow estimates: Model DQT Model MK6 Purchase cost 18,000 26,000 Estimated net cash inflows: Year 1 9,000 12,000 Year 2 7,000 10,000 Year 3 5,000 9,000 Year 4 4,000 6,000