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Assume that Mrs. Park’s real income will not change over the next ten years. Use the mean real income from question 1 to determine projected real income for the future ten years of Mrs. Park’s work expectancy. Use the regression equation from question 2 to project adjusted price indices for the next ten years. Assume that Mrs. Park pays 20% of her actual income in taxes and that Green will not provide significant state assistance.
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Get Help Now!Use the projected real income and adjusted price indices to estimate Mrs. Park’s net actual income for the next ten years. What would be the likely amount of an award to Mrs. Park based on a present value rate of 8%? Discuss the factors that could cause Mrs. Park’s future income to differ from your estimate.
