Fair price estimation given annual index values

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Reference no: EM1310720

Fair price estimation given annual index values applicable over the years to the item concerned.

In 19x9, you are estimating a should-pay price for 500 fixtures as part of a building modernization. An offeror has proposed a price of $100,125.

You have the data in the table from five previous buys in which the price paid was considered fair and reasonable.

YEAR	INDEX
19X4	109.9
19X5	108.8
19X6	114.2
19X7	121.2
19X8	127.0
19X9	133.5*

Given that the following index applies to this contracting situation, would you consider the Price to be fair and reasonable?

YEAR	INDEX
19X4	109.9
19X5	108.8
19X6	114.2
19X7	121.2
19X8	127.0
19X9	133.5*

*Current estimates for 19x9

Reference no: EM1310720

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