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# “A Day at the Beach”

“A Day at the Beach”. Nelly Altamirano Bill Bowker Dmitriy Novak Vanessa Graciano Yiwen Zhang. Calculation of Damages: Lost Wages. Mr. McDuff’s 2009 Yearly Salary: \$48000 Estimated Mean Inflation Per Year: 3.333% Real Increase in Wages Per Year: 3% Tax Rate: 25%

## “A Day at the Beach”

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### Presentation Transcript

1. “A Day at the Beach” Nelly Altamirano Bill Bowker Dmitriy Novak Vanessa Graciano Yiwen Zhang

2. Calculation of Damages:Lost Wages • Mr. McDuff’s 2009 Yearly Salary: \$48000 • Estimated Mean Inflation Per Year: 3.333% • Real Increase in Wages Per Year: 3% • Tax Rate: 25% • Mr. McDuff is owed over \$411000 in lost wages through 2021. Dmitriy Novak

3. Calculation of Damages • Lost wages • Pain and suffering • Caretaker expenses Dmitriy Novak

4. Recommendations

5. Appendix A: Statistical Analysis μ = the mean difference in accident rates between drivers wearing flip flops and those wearing other footwear for the population the sample mean of difference in accident rates

6. Appendix A: Statistical Analysis H0 = Ha =

7. Appendix B: Calculation of Lost Wages Calculation of mean expected inflation rate: We estimate that the mean future inflation rate will be about 3.333%

8. Appendix B: Calculation of Lost Wages • Mr. McDuff’s 2009 Yearly Salary: \$48000 • Mean Inflation Rate Per Year: 3.333% • Real Increase in Wages Per Year: 3% • Tax Rate: 25% • Wages per year for future years: (wages for previous year)(1.0333)(1.03) • [e.g. wages for 2010: (wages for 2009 = \$48000)(1.0333)(1.03) = \$51086.35] • Yearly wages after tax: (yearly wages)(.75) • Present value of future wages: (wages per year)(present value factor)

9. Appendix B: Calculation of Lost Wages • Half of wages for 2009, after tax: \$48000/2(.75) = \$18000 • Total wages owed: \$393275.79 + \$18000 = \$411275.79

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