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A piece of equipment with a list price of $450 can actually be purchased for either $400 cash or $50 immediately plus four additional annual payments of $115.25. All values are in dollars of current purchasing power. If the typical customer considered a 5% interest rate appropriate, the inflation rate at which the two purchase alternatives are equivalent is nearest to:
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Turrubiates corporation makes a product that uses a material with the following standards standard quantity 8.0 liters per unit standard price $2.50 per liter standard cost $20.00 per unit the company budgeted for production of 3,800 units in april, but actual production was 3,900 units. the company used 32,000 liters of direct material to produce this output. the company purchased 20,100 liters of the direct material at $2.6 per liter. the direct materials purchases variance is computed when the materials are purchased. the materials quantity variance for april is:
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A piece of equipment with a list price of $450 can actually be purchased for either $400 cash or $50...
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