1 2 3 Future Income Projection CPI Values 2a Below, you will generate the projected income...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
1 2 3 Future Income Projection CPI Values 2a Below, you will generate the projected income 5 years in the future You will base your 6 projection on CPI values that you look up. Use this procedure to look up the CPI value: 7 20 3. Press the "Retrieve Data" button at the bottom of the list. This should take you to a CPI table for about the last 10 years. (You may need to change the values shown by using the "Change Output 2 Options" at the top of the page). 29 =0 20 3 4 First, fill in the CPI value for the given month (1 = Jan, 2 = Feb, etc.) and year. Then, fill in the CPI #1 25 values for the next 7 years, advancing exactly one year for each value. For example, if you start in 6 February 2011, your next CPI value will come from February 2012. Format your CPI values as 7 Numbers with 3 decimals of precision. 28 Month Number 2 #2 13 13 14 14 55 19 6 +7 Current Income 38 =9 10 1 12 12 13 1. Go to Bureau of Labor Statistics page link https://data.bls.gov/cgi-bin/surveymost?cu 2. Check the box to the left of text "U.S. city average, All items - CUUR0000SAO" 14 15 16 $105,536.00 9 9 9 9 9 9 9 9 9 Year 2014 2015 2015 2016 2016 2017 2018 2019 2020 2021 2022 CPI Value 238.031 237.945 241.428 246.819 252.439 256.759 260.28 274.31 296.808 Green Gold Any other color Enter a number Enter an Excel formula Make no changes 2b Now, from the year and CPI values, find the slope and y-intercept of the best-fit line for your CPI values. Format your values as Numbers with 3 decimals of precision. Slope (m) Y-Intercept (b) 6.445920103 1984.067595 2c Use your slope and y-intercept to project the CPI 5 years in the future based on the Year you are Projecting the Income to; calculate the 5- year Inflation Rate based on the last CPI value from the table in 2a and the Projected CPI Value; apply the 5-year Inflation Rate to your Current Income to find a 5-year Income Projection; and calculate the Projected Monthly Income. Use Excel formulas with cell references when appropriate for all gold cells. Format the Projected CPI Value as a Number with 3 decimal places and the 5-year Inflation Rate as a Percentage with 2 decimal places. Format Your Current Income, Your 5-year Income Projection, and Projected Monthly Income as Currency with 2 decimal places. Year you are Projecting your Income to (5 years after the last CPI value from 2a) Projected CPI Value for the Year you are Projecting to The 5-year Inflation Rate based on the last CPI value from 2a and the Projected CPI value Your Current Income (cell referenced from above)| Your 5-year Income Projection Projected Monthly Income 2027 Income and Projection - part 2c 1. 2. 3. 4. 5. 6. The Year you are projecting to represents 5 years after the last year in the CPI values table. Projected CPI Value for the Year you are Projecting to = slope*Year+y-intercept The five-year inflation rate is =(The projected CPI-last CPI value from 2a)/ last CPI value from 2a Cell reference the Current Income Your 5-year Income Proection inflation rate) current Projected Monthly Budget = Your 5-year Income Projection/12 ToJelleu LI I value as a univer with cumiar piaces and the Jaycan natin hale as a i cicilage will & uccinia nt Income, Your 5-year Income Projection, and Projected Monthly Income as Currency with 2 decimal places. Year you are Projecting your Income to (5 years after the last CPI value from 2a) Projected CPI Value for the Year you are Projecting to The 5-year Inflation Rate based on the last CPI value from 2a and the Projected CPI value Your Current Income (cell referenced from above) Your 5-year Income Projection Projected Monthly Income 2027 319.448 7.63% $60,736.00 $65,371.32 $5,447.61 1 2 3 Future Income Projection CPI Values 2a Below, you will generate the projected income 5 years in the future You will base your 6 projection on CPI values that you look up. Use this procedure to look up the CPI value: 7 20 3. Press the "Retrieve Data" button at the bottom of the list. This should take you to a CPI table for about the last 10 years. (You may need to change the values shown by using the "Change Output 2 Options" at the top of the page). 29 =0 20 3 4 First, fill in the CPI value for the given month (1 = Jan, 2 = Feb, etc.) and year. Then, fill in the CPI #1 25 values for the next 7 years, advancing exactly one year for each value. For example, if you start in 6 February 2011, your next CPI value will come from February 2012. Format your CPI values as 7 Numbers with 3 decimals of precision. 28 Month Number 2 #2 13 13 14 14 55 19 6 +7 Current Income 38 =9 10 1 12 12 13 1. Go to Bureau of Labor Statistics page link https://data.bls.gov/cgi-bin/surveymost?cu 2. Check the box to the left of text "U.S. city average, All items - CUUR0000SAO" 14 15 16 $105,536.00 9 9 9 9 9 9 9 9 9 Year 2014 2015 2015 2016 2016 2017 2018 2019 2020 2021 2022 CPI Value 238.031 237.945 241.428 246.819 252.439 256.759 260.28 274.31 296.808 Green Gold Any other color Enter a number Enter an Excel formula Make no changes 2b Now, from the year and CPI values, find the slope and y-intercept of the best-fit line for your CPI values. Format your values as Numbers with 3 decimals of precision. Slope (m) Y-Intercept (b) 6.445920103 1984.067595 2c Use your slope and y-intercept to project the CPI 5 years in the future based on the Year you are Projecting the Income to; calculate the 5- year Inflation Rate based on the last CPI value from the table in 2a and the Projected CPI Value; apply the 5-year Inflation Rate to your Current Income to find a 5-year Income Projection; and calculate the Projected Monthly Income. Use Excel formulas with cell references when appropriate for all gold cells. Format the Projected CPI Value as a Number with 3 decimal places and the 5-year Inflation Rate as a Percentage with 2 decimal places. Format Your Current Income, Your 5-year Income Projection, and Projected Monthly Income as Currency with 2 decimal places. Year you are Projecting your Income to (5 years after the last CPI value from 2a) Projected CPI Value for the Year you are Projecting to The 5-year Inflation Rate based on the last CPI value from 2a and the Projected CPI value Your Current Income (cell referenced from above)| Your 5-year Income Projection Projected Monthly Income 2027 Income and Projection - part 2c 1. 2. 3. 4. 5. 6. The Year you are projecting to represents 5 years after the last year in the CPI values table. Projected CPI Value for the Year you are Projecting to = slope*Year+y-intercept The five-year inflation rate is =(The projected CPI-last CPI value from 2a)/ last CPI value from 2a Cell reference the Current Income Your 5-year Income Proection inflation rate) current Projected Monthly Budget = Your 5-year Income Projection/12 ToJelleu LI I value as a univer with cumiar piaces and the Jaycan natin hale as a i cicilage will & uccinia nt Income, Your 5-year Income Projection, and Projected Monthly Income as Currency with 2 decimal places. Year you are Projecting your Income to (5 years after the last CPI value from 2a) Projected CPI Value for the Year you are Projecting to The 5-year Inflation Rate based on the last CPI value from 2a and the Projected CPI value Your Current Income (cell referenced from above) Your 5-year Income Projection Projected Monthly Income 2027 319.448 7.63% $60,736.00 $65,371.32 $5,447.61
Expert Answer:
Answer rating: 100% (QA)
Here are the steps to project income 5 years into the future based on CPI values 1 The last year in ... View the full answer
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1285190907
8th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Posted Date:
Students also viewed these finance questions
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
-
In the figure below, which compares different DNA extraction kits (e.g, MO BIO and PSP), which one of the two trees shows the co-occurrence of microbial taxa? Proportion of max 0 0.2 0.4 0.6 0.8...
-
Metatrend's stock will generate earnings of $5 per share this year. The discount rate for the stock is 15% and the rate of return on reinvested earnings is also 15%. a. Find both the growth rate of...
-
Show that P is closed under homomorphism iff P = NP.
-
Defendants Jack and Claire Lein owned and lived on Willow Creek Farm from 1980 through 2004. The farm manager, Stewart, and his girlfriend, plaintiff Tambra Curtis, also lived on the farm during this...
-
Top managers of OHare Products, Inc., have asked for your help in comparing the companys profit performance and financial position with the average for the industry. The accountant has given you the...
-
What sql commands are used in RDBMS? What are the 5 basic SQL queries?
-
This Mini Practice Set will help you review all the key concepts of the accounting cycle for a merchandising company, along with the integration of payroll. Betty Loeb took over the business now...
-
Write a business case, relevant to an HR or payroll contact center (internal or external). Include a description of the organization, any information about their employee relationship strategy along...
-
Convert the following to standard scientific notation. 46. 0.253x102 0.00253 47. 0.009711000000000971 48. 0.000085410-5 49. 0.015481000000 01598 50. 0.00000841x10-12 51. 0.0799104 0.000007911 52....
-
4. A capacitor of 2.0 F is charged using a 1.5V battery. The charged capacitor is then discharged through a 60k2 resistor. What is the time constant of the discharged circuit? Calculate the time...
-
A desert tortoise moves at 0.134m/s How long will ti take the mortise to cross a 10m highway? The desert tories is still moving at 0.134 m/s. How far will the tortoise travel in 15s
-
8. A class of 10 students taking an exam has a power output per student of 200. W. Assume the initial temperature of the room is 20. C and that its dimensions are 6.0 m by 15 m by 3.0 m. What will...
-
2. A force, F, is measured to be 100 kN at a slope of %4 (rise/run) in the 1st quadrant. What are the Fx and the Fy component values of the force? 100 kN F 3 4 Fx = Fy =
-
The Hotel Paris's competitive strategy is to use superior guest service to differentiate the Hotel Paris properties, and to thereby increase the length of stay and return rate of guests, and thus...
-
Continuation of Exercise 4-83. (a) What is the probability that the first major crack occurs between 12 and 15 miles of the start of inspection? (b) What is the probability that there are no major...
-
Selected data for General Mills for 2007, 2008, and 2009 appear below (amounts in millions). 2009 2008 2007 Net income......................$1,304.4...............$1,294.7.................$1,144.0...
-
Assume that Motorola, Inc., issues bonds with a face value of $10,000,000 for $9,200,000. The bonds have detachable warrants that may be traded in for shares of common stock. Assume that immediately...
-
Using the following key, identify the effects of the following transactions or conditions on the various financial statement elements: I ¼ increases; D ¼ decreases; NE ¼ no...
-
The marginal tax rate on a corporate income of \(\$ 87,000\) is closest to which of the following? a. 15 percent b. 20.5 percent c. 25 percent d. 34 percent
-
Calculate the corporate income tax for each of the following corporate taxable incomes. For each, determine the effective (average) tax rate and the marginal tax rate. a. $12,000 b. $65,000 c....
-
True or False: If the same amount of money is invested in something that can be expensed as in something that must be depreciated (and both provide the same annual returns) then you should choose the...
Study smarter with the SolutionInn App