You are developing a data base for Army tracked combat vehicles and you are normalizing the data base to base year 2006 dollars. What number would you enter into the data base for a vehicle budgeted at $1,725,000 in the FY08 appropriation?
$1,604,505
$1,654,754
$1,573,044
$1,654,685
Insufficient data.
1604505
To normalize the database to base year 2006 dollars, you will need to adjust the budgeted amount for inflation. Here's how you can calculate it:
1. Find the inflation rate between the base year (2006) and the year of the appropriation (FY08). You can use the consumer price index (CPI) to determine the inflation rate.
2. Calculate the inflation factor by dividing the CPI of FY08 by the CPI of the base year (2006).
3. Multiply the budgeted amount by the inflation factor to get the adjusted amount in 2006 dollars.
Let's assume the inflation factor is 1.1 (just for demonstration purposes). You can use this factor to adjust the budgeted amount:
Adjusted amount = $1,725,000 * 1.1 = $1,897,500
However, the options you provided do not match this calculated amount. Therefore, it's not possible to determine the correct answer without knowing the actual inflation rate between 2006 and FY08.