T
Taylor J
Guest
To induce Toyota to build its U.S. production facilities in Kentucky, the state spent $49 million to buy the 1,500-acre site ($43,667/acre), $40 million to construct roads and sewers, and $68 million to train new workers. Kentucky also agreed to spend up to $168 million to pay the interest on loans should Toyota decide to borrow money to finance the project. Did Kentucky overpay to win Toyota’s business? Explain.