Buse case3
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cruisingwithflipflopscase3.docxCRUISING WITH FLIP FLOPS (case#3)
Question 1
Question 4
Part a :
|
Year |
Percentage change in CPI |
|
1 |
- |
|
2 |
2.83% |
|
3 |
2.76% |
|
4 |
3.77% |
|
5 |
2.28% |
|
6 |
2.17% |
|
7 |
3.65% |
|
8 |
4.03% |
|
9 |
5.19% |
|
10 |
3.32% |
|
Mean |
3.33% |
4b.
6.34%=mean inflation rate+union inflation
|
Year |
Gross(+3%+CPI) |
Taxes(-25%) FUTURE INCOME |
future income based on a present value rate of 8% |
|
|
|
|
|
|
2009 |
(48,000+6.34%)= $51,043.20 |
$38,282.40 |
|
|
2010 |
(51,043.20+6.34%)= $54,279.34 |
$40,709.50 |
|
|
2011 |
(54,279.34+6.34%)= $57,720.65 |
$43,290.49 |
|
|
2013 |
(57,720.65+6.34%)= $61,380.14 |
$46,035.11 |
|
|
2014 |
(61,380.14+6.34%)= $65,271.64 |
$48,953.73 |
|
|
2015 |
(65,271.64+6.34%)= $69,409.86 |
$52,057.40 |
|
|
2016 |
(69,409.86+6.34%)= $73,810.45 |
$55,357.84 |
|
|
2017 |
(73,810.45+6.34%)= $78,490.03 |
$58,867.52 |
|
|
2018 |
(78,490.03+6.34%)= $83,466.30 |
$62,599.73 |
|
|
2019 |
(83,466.30+6.34%)= $88,758.06 |
$66,568.55 |
|
|
2020 |
(88,758.06+6.34%)= $94,385.32 |
$70,788.99 |
|
|
2021 |
(94,385.32+6.34%)= $100,369.35 |
$75,277.01 |
|
