Question: An air jet manufacturing facility had a cost index equal to 90.00 per aircraft in the year 2008. The anticipated cost index for the airplane

An air jet manufacturing facility had a cost index equal to 90.00 per aircraft in the year 2008. The anticipated cost index for the airplane in 2013 is 110. The average compound rate of growth should hold steady for the next 20 years. If an aircraft costs $15 million to build in 2010, what is its expected cost in 2011? State your assumptions.

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