A US Auto Maker Plans to Build Two More Plants in in China

question 23

Short Answer

A U.S. auto maker plans to build two more plants in China as it aims to harness continued growth in Asia. The company estimates that it must make annual investments of $40 million over a 8- year period. How much would the company have to invest now at an interest rate of 3% per year to sufficiently provide for the annual payments, if the first payment will begin 4 years from now?

---

Definitions:

Caring

The act of showing compassion and concern for others, often manifested through helping, nurturing, or being empathetic towards another's needs and well-being.

Devalued

Considered to have less worth or importance, often resulting in diminished respect and opportunities.

Psychological Well-Being

A state of mental health that encompasses emotional balance, self-esteem, and a sense of purpose.

Blue-Collar Workers

Employees who perform manual labor, often in industries such as manufacturing, construction, and maintenance.