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:

Which of the following statements are false regarding activity-based costing? non-manufacturing costs are important to include when calculating the cost of each product. costs are allocated based on a pre-determined overhead rate. transitioning from traditional costing methods to activity-based costing can be complicated and costly. activity-based costing follows the same basic calculation methods as traditional costing approaches. none of the above