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Inflation

18/08/2020 Client: trav2012 Deadline: 7 Days

19. A software company’s labor requirements currently cost $350,000/year. The labor-hour requirements are expected to increase by 10 percent per year over the next 5 years. If inflation is 4 percent, determine the labor costs after 5 years using


a. then-current dollars.


b. constant-worth dollars.



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