Fair price estimation given annual index values applicable over the years to the item concerned.
In 19x9, you are estimating a should-pay price for 500 fixtures as part of a building modernization. An offeror has proposed a price of $100,125.
You have the data in the table from five previous buys in which the price paid was considered fair and reasonable.
|
YEAR
|
INDEX
|
|
19X4
|
109.9
|
|
19X5
|
108.8
|
|
19X6
|
114.2
|
|
19X7
|
121.2
|
|
19X8
|
127.0
|
|
19X9
|
133.5*
|
Given that the following index applies to this contracting situation, would you consider the Price to be fair and reasonable?
|
YEAR
|
INDEX
|
|
19X4
|
109.9
|
|
19X5
|
108.8
|
|
19X6
|
114.2
|
|
19X7
|
121.2
|
|
19X8
|
127.0
|
|
19X9
|
133.5*
|
*Current estimates for 19x9