Read the case first then answer the question :

PEDAL TO THE SETTLE

It was one of those "dog days" of the summer of 2019 in the Blue View Valley. Temperatures had been in the low 100 degrees Fahrenheit for the last two weeks. Vivian Hope was at the end of her rope coping with the heat. Over the hill at the local State Beaches, the daily temperatures for the last two weeks had been at least 20 degrees cooler than in the Valley. Hope decided to spend the day at Bright Beach to enjoy the cooler weather and impress other beachgoers with her new slim figure. For the last several months, Hope had been eating healthy and exercising daily. In addition, she was eager to show off a stunning yellow polka dot bikini by Federico Dario and a new pair of Kara Viviana designer flip-flops that she had just purchased from the Kara Viviana Store during a recent visit to the local mall.

The weather at the beach was just as expected. The skies were a fantastic shade of periwinkle blue. There was not a trace of pollution in the air; the beach was free of debris; and the coliform content of the ocean water was within acceptable levels. As she lay on the sand, absorbing the warmth of the sun, she could smell the wonderful aromas of freshly made buttered popcorn and cotton candy wafting from the nearby concessions on Bright Pier. Hope could not help but think that life was good here in paradise.

At day's end, Hope was on an emotional high. She was feeling as good as she had felt in months. She decided to head home. Hope had driven to the beach in her new 2019 BMW 4 Series Convertible sports car. Now, with the top down, Hope drove along the coast highway on her way to the canyon road that would take her over the hills and back into the Valley. While waiting at a stoplight, Hope was conscious of the stares from occupants of the other vehicles also waiting at the stoplight. Flattered by the stares and hoping to impress all who could see, she stepped on the accelerator and started to drive through the intersection at normal speed. However, as she stepped on the gas pedal, one of the flip-flops Hope was wearing slipped off her foot and became lodged under the pedal. The automobile continued to accelerate but at a very rapid rate. Within moments, Hope lost control of the vehicle. In the process, her car crossed the double yellow line and into oncoming traffic colliding head-on with a car driven by Jacob Nolan.

As a consequence of the accident, Nolan suffered a spinal cord injury resulting in his becoming a quadriplegic. Nolan's medical condition is such that he is unable to ever work again. At the time of his injury: Nolan was 53 years of age; his life expectancy was 77 years of age; he would have been expected to retire at the age of 65; he was an employee of the United States Postal Service covered by a union contract projecting his wages to rise by 3.3% per year in real terms plus an annual Cost of Living Adjustment (COLA) equal to the rate of inflation; and his then current annual gross salary was $68,000.

Nolan and Hope have each retained legal counsel to represent them in resolving liability issues that have arisen as a result of the unfortunate circumstances in this case. Nolan has retained Ms. Emma Summer and Hope has retained Mr. Paxton Rafael.

Q. 4. Assume that Nolan prevails in his negligence andlor strict liability lawsuits. In determining the amount of damages he may recover for loss of earnings consider the following: Nolan's medical condition is such that he is unable to ever work again; he was 53 years of age at the time of the injury and would have been expected to retire at the age of 65; his life expectancy at the time of the injury was 77 years of age; he is an employee of the United States Postal Service covered by a union contract projecting his wages to rise by 3.3% per year in real terms plus an annual Cost of Living Adjustment (COLA) equal to the rate of inflation; and his current annual gross salary is $68,000. Table 2 below contains the Consumer Price Index (CPI) for each of the past 10 years. Determine the average annual percentage change in the CPI over the past 10 years. Explain the meaning of this statistic. What assumptions would have to be made about monetary policy in the next 12 years to assume the average annual percentage change in the CPI over the past 10 years can be used to predict future ination rates? Assume that 25% of Nolan's income is paid in state and federal income taxes and that he will not receive any state or federal assistance due to his medical condition. Using the information provided above and your results in 4a., project the likely amount of an award to Nolan for lost future income based on a present value rate of 5%. Table 2: Year End Consumer Price Index (CPI) for the Years 2009 to 2018 YearEnd Year CPI Value 2009 214.5 2010 218.1 2011 224.9 2012 229.6 2013 233 2014 236.7 2015 237 2016 240 2017 245.1 2018 25