Shea is pricing materials (wood, wire, pipe, etc.) for new home construction on a “per unit” basis. Inflation on materials has been running at 16.0% for the past 3 years and is expected to remain at that rate for the next 10 years. The actual dollars paid for expenses at the end of year 3 for a “unit” are $55,000. A. What did the same set of materials cost 3 years ago? B. If the trend continues, what will they cost 10 years from now?
Shea is pricing materials (wood, wire, pipe, etc.) for new home construction on a “per unit” basis. Inflation on materials has been running at 16.0% for the past 3 years and is expected to remain at that rate for the next 10 years. The actual dollars paid for expenses at the end of year 3 for a “unit” are $55,000. A. What did the same set of materials cost 3 years ago? B. If the trend continues, what will they cost 10 years from now?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Ee.74.
Chapter 10 Section 2 Problem 10 (10.02-PR010)
Using excel answer the following.
Shea is pricing materials (wood, wire, pipe, etc.) for new home construction on a “per unit” basis. Inflation on materials has been running at 16.0% for the past 3 years and is expected to remain at that rate for the next 10 years. The actual dollars paid for expenses at the end of year 3 for a “unit” are $55,000.
A. What did the same set of materials cost 3 years ago?
B. If the trend continues, what will they cost 10 years from now?
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