In January 1914, Henry Ford startled the world by announcing that Ford Motor Company would pay $5 a day to its workers. At the time, $5 was about double what the average auto worker made.

A recent article stated that at General Motors, the total cost for wages (not including benefits) is about $40 an hour.

1) What was the income tax rate in 1914 for someone making $5 a day?

2) What was the income tax rate in 2017 for someone making $40 an hour?

3) What has the average annual inflation been since 1914?

4) What would $5 per hour be in 2017 dollars?

5) If you consider take home pay, who received the most take home pay in inflation adjusted 2017 dollars, the $5 per hour worker in 1914 or the $40 per hour worker today?

Note: This assignment is designed to help you develop a deeper understanding of the time value of money and the effects of taxation. The calculations are not that hard, but you'll need to give the question somes thought before starting. How do you calculate inflation? How do you calculate the value of a dollar today compared to the value of a dollar in years past? What are tax rates like today compared to what they were 100 years ago? What are the consequences of high tax rates?

Submit your answer in an Excel document properly labeled.