Chan Has Been in the Chemical Industry for the Past

Essay

Chan has been in the chemical industry for the past 22 years.Current employment total is 65 workers, and the current economic situation (inflation of 4 percent, nominal discount rate) has forced the company to close its doors.Chan however, must continue to pay health care costs for the next four years at a cost of $2,400 per worker, at an increasing rate of 3 percent above inflation.A consultant is called in to find the present value of this obligation.