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31. Fred is a successful dentist in Boston. He has a com- prehensive injury and a disability insurance policy that he has carried since


  

31. Fred is a successful dentist in Boston. He has a com- prehensive injury and a disability insurance policy that he has carried since shortly after he started his practice. During the first 15 years of his practice he has experienced the following net income Year Net Income 1 $56,000 2. 64,000 3. 70,000 4 77,000 5. 85,000 6 93,000 7. 101,000 8. 110,000 9. 124,000 10 135,000 11 145,000 156,000 120,000 117,000 15 121,000 At the beginning of his 13th year of practice he experienced an accident at the office in which he fell and hit his head. Ever since the accident he has experienced serious headaches and dizziness that he had not experienced before. As a result of these symptoms, Fred is unable to work the long hours that he once did and he has been unable to grow his practice. He fully expected to grow his income from his practice by about 10 percent a year. He has filed a claim (which is being contested) with his insurance company. Fred has hired you to prepare a measure of eco- nomic damages resulting from the accident. Fred was 42 years old at the time of the accident and he just turned 45 last week. a. What information will you seek from Fred to help with your measurement of economic damages? What do you think will comprise the compo- nents of your damage measurement? C Based on the information available to you, pre- pare your best estimate of the damages that you will seek on behalf of Fred. 12345 b.

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