Assume that Mrs. Bella's real income will not change over the next ten years. Use the

mean real income from question 1 to determine projected real income for the future ten

years of Mrs. Bella's work expectancy. Use the regression equation from question 2 to

project adjusted price indices for the next ten years. Assume that Mrs. Bella pays 20% of

her actual income in taxes and that Green will not provide significant state assistance.

Use the projected real income and adjusted price indices to estimate Mrs. Bella's net

actual income for the next ten years. What would be the likely amount of an award to

Mrs. Bella based on a present value rate of 8%? Discuss the factors that could cause

Mrs. Bella's future income to differ from your estimate.