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Advanced Manufacturing Inc. engaged a vendor on a Fixed Price 10 years contract at the start of the year 2005. The target price of the
Advanced Manufacturing Inc. engaged a vendor on a Fixed Price 10 years contract at the start of the year 2005. The target price of the contract is $22.5 million, which will be evaluated and adjusted again at the end of the 10-year term based on the percentage change on the Canadian Consumer Price Index (CPI). What is the Final Price that Advanced Manufacturing Inc. is obligated to the vendor based on the Canadian CPI posted by the Government of Canada? Refer to the table below. Consumer Price Index, Historical Summary (1997 to 2016) All-items Change from previous year 2002=100 % 1997 90.4 1.7 1998 91.3 1 1999 92.9 1.8 2000 95.4 2.7 2001 97.8 2.5 2002 100 2.2 2003 102.8 2.8 2004 104.7 1.8 2005 107 2.2 2006 109.1 2 2007 111.5 2.2 2008 114.1 2.3 2009 114.4 0.3 2010 116.5 1.8 2011 119.9 2.9 2012 121.7 1.5 2013 122.8 0.9 2014 125.2 2 2015 126.6 1.1 2016 128.4 1.4
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