(Related to Checkpoint 6.5) (Present value of a growing perpetuity) What is the present value of a perpetual stream of cash flows that pays $6,500 at the end of year one and the annual cash flows grow at a rate of 4% per year indefinitely, if the appropriate discount rate is 14%? What if the appropriate discount rate is 12%? a. If the appropriate discount rate is 14%, the present value of the growing perpetuity is $ b. If the appropriate discount rate is 12%, the present value of the growing perpetuity is $ (Round to the nearest cent.) (Round to the nearest cent.)

Exercise 5-25 (Static) Activity Levels and Cost Drivers [LO 5-2] Shroeder Machine Shop has the following activities: Required: 1. Classify each of the activities as a unit-level, batch-level, product-level, or facility-level activity. 2. Identify a proper cost driver for each activity. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Identify a proper cost driver for each activity. (If an activity can be classified with more than one selection, choose the option that contains ALL the appropriate classifications.) Activities a. Machine operation b. Machine setup c. Production scheduling d. Materials receiving e. Research and development f. Machine maintenance g. Product design. h. Parts administration i. Final inspection of a sample of products j. Materials handling Cost Drivers Machine hours Number of setups or setup hours Number of production orders Number of material receipts; Number of purchase orders Number of products Number of machine…

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Question 5 of 5 X Costing method, which calculates per equivalent unit cost of all production from work done until the date of calculation, is termed as FIFO method Neither Weighted average method