Part C

Question 2 (25 marks) (a) Consider the consumer price index increases for new car was from 2011 at (195.3 + D8) to 2019 at (236.4 + D8). Determine the average inflation rate for each item over the nine- year period. In a discussion forum of computer games competition, winner A claimed that he won his prize in 2014 was ($20,000 + 10 x D8). While winner B stated that he won his prize in 2019 was ($25,000 + 10 x D8). It seems that the prize won by winner B was much bigger. You found that the average CPI was 5% for these 5 years. Compare these two prizes in terms of common purchasing power. Whose buying power is greater? (Round off your answer to 2 decimal places.) 15 marks) (c) A wind turbine construction company bids for a fixed-price order from local government to install 70 wind turbine towers in the far coastal area. They project the works with their increasing capacity in the coming 6 years in the following table. Period Number of installations 10 12 13 14 10 Assume the investment costs them ($3,000,000 + 1000 x D8) in now. Once installed. each turbine can earn $100,000. They assume the average inflation rate will be 4% over these 6 years. What would be the present worth of this project? Is it worth to invest? (Round off your answer to integer.) (15 marks) for d8=0, with clear steps thank you