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You are responsible for a cost proposal for a very large procurement.
The RFP instructions state the following: "Provide a target cost in constant FY 2004 dollars for each fiscal year shown in the table. Determine the total escalation of the target cost and provide it in the table as a separate item by fiscal year. In addition, include the basis for escalation of the target cost. The Offeror's estimate shall provide year-by-year expenditures and the corresponding yearly escalation rate, expressed as a factor to be multiplied by each preceding year.
Following these instructions, the technical estimators have come up with the following baseline cost:
Year FY04 FY05 FY06 FY07 FY08
Target Cost $10M $50M $20M $15M $10M
Escalation Rate
Escalation Amount
Total
Complete the table with the escalation and the costs. The escalation rate you used was 3.2% each year.
Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..
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