Contains the consumer price index

Assignment Help Business Management
Reference no: EM131110523

Please read the case carefully and solve the question 4 part A : Q. 4.

Assume that McDuff prevails in his negligence and/or strict liability lawsuits. In determining the amount of damages he may recover for loss of earnings consider the following: McDuff's medical condition is such that he is unable to ever work again; he was 53 years of age at the time of the injury and would have been expected to retire at the age of 65; his life expectancy at the time of the injury was 77 years of age; he is an employee of the United States Postal Service covered by a union contract projecting his wages to rise by 3% per year in real terms plus an annual Cost of Living Adjustment (COLA) equal to the rate of inflation; and his current annual gross salary is $48,000.

a. Table 2 below contains the Consumer Price Index (CPI) for each of the past 10 years.  Determine the average annual percentage change in the CPI over the past 10 years.  Explain the meaning of this statistic.  What assumptions would have to be made about monetary policy in the next 12 years to assume the average annual percentage change in the CPI over the past 10 years can be used to predict future inflation rates?

Reference no: EM131110523

Questions Cloud

What benefit results from the tax deductibility : What benefit results from the tax deductibility of certain corporate expenses?
Econ production possibility frontier : Suppose that there are two products: clothing and soda. Both Brazil and the United States produce each product. Brazil CAN produce 100,000 units of clothing per year and 50,000 cans of soda.
How does the tax treatment of dividend income : How does the tax treatment of dividend income by the corporation moderate the effects of double taxation?
Describe the tax treatment of ordinary income : Describe the tax treatment of ordinary income and that of capital gains. What is the difference between the average tax rate and the marginal tax rate?
Contains the consumer price index : Assume that McDuff prevails in his negligence and/or strict liability lawsuits. In determining the amount of damages he may recover for loss of earnings consider the following: McDuff's medical condition is such that he is unable to ever work agai..
What different aspects of financial markets do the security : What different aspects of financial markets do the Securities Act of 1933 and the Securities Exchange Act of 1934 regulate?
What items and amounts will appear on the lessor : Assuming the lessor's accounting period ends on December 31, answer the following questions with respect to this lease agreement.
The demand and supply functions of k in a given economy : Consider the demand and supply functions of K in a given economy.K = 120 - R [Demand function]K = 2R [Supply function]
Why do you think so many pieces of important legislation : Why do you think so many pieces of important legislation related to financial markets and institutions were passed during the Great Depression?

Reviews

Write a Review

Business Management Questions & Answers

  Homogeneous units to achieve synergy

Advantage would be the task of planning and controlling by a centralized corporate office; thus making the task more manageable.

  High degree of task interdependence

The tasks that your group is confronted with are exceedingly complex requiring people to have specialized training for different aspects of the tasks and you have a high degree of task interdependence.

  Personal example in a business setting

Describe a personal example in a business setting that supports your explanation.  For instance, you might want to discuss how people deal with edicts from on high in a given organization vs. situations where employees have a voice in the decision..

  What is pioneering about salesforce''s business model

What is pioneering about Salesforce's business model from a small enterprise perspective? What are potential advantages as well as disadvantages of a small enterprise doing business with a company offering services

  Current business problem

In the Week Three Discussion, you selected a current business problem from the following case categories:

  Change management planquestion you have just been hired to

change management planquestion you have just been hired to manage a new project that will involve not only the

  The lawsuit was filed in a contributory negligence state

Pam and Deb were in a car accident. Deb went through a red light hitting Pam from the side. But Pam was driving 45 miles per hour in a 25 miles per hour zone. Pam sues Deb based on neglect for damages

  Portland company''s ironton plant produces precast

Portland Company's Ironton Plant produces precast ingots for industrial use. Carlos Santiago who was recently chosen general manager

  Explain reviewing the information are important

Write a paper on where you can find financial statements for publicly-held corporations within the U.S. and outside the U.S. Explain why reviewing the information on these financial statements are important.

  Business ethics and operations

Business Ethics Loren Vranich, a doctor practicing under the corporate name Family Health Care, P.C., entered into a written employment contract to hire Dennis Winkel. The contract provided for an annual salary, insurance benefits, and other emplo..

  Evaluate the strengths and weaknesses of the control system

Evaluate the strengths and weaknesses of this control system as a basis for evaluating the performance of the reservation clerks.

  Decision making and global competition and cultures

Explain what is the influence of global competition and culture on managerial decisions in changing environments?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd