A software company’s labor requirements currently cost $350,000/year. The labor-hour requirements are expectedto increase by 10 percent per year over the next 5 years. If inflation is 4 percent, determine the labor costs after5 years usinga. then-current dollars.b. constant-worth dollars.

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Chapter1: Making Economics Decisions
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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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