We can construct the nominal increase using Fisher equation: Nominal increase = (1 + inflation rate) x (1+ real increase) —1. For year 2012,

Nominal increase = (1 + 3.00%) x (1 + 2.18%) — 1 = 5.24%. 6. Apply the nominal increases to the values that you have found for today (purchase and sale prices, general expenses, etc.). This is shown in Table B6.

The minimum wage for 2006 = 381,500.00 x (1 + 6.78%) = 407,354.79. Table B6 Forecasted minimum wage


Nominal increase

Value of the

Business Brain

Business Brain

Among the hardest transitions for individuals is to move from the employee to the entrepreneur mentality. The idea of getting on your own, getting your own business is fantastic. It's the desire of a lot of individuals to leave their jobs and get to be successful business owners.

Get My Free Ebook

Post a comment