An insurance company appraiser deems a collision repair center customer’s vehicle to be a “constructive total loss.” By this, the insurer means the:

A. Vehicle’s construction was faulty to begin with.
B. Repairer could never restore the vehicle to a safe operating condition.
C. OEM parts needed are no longer manufactured.
D. ACV of the vehicle, less the salvage value, is exceeded by the cost to repair it.


B. Repairer could never restore the vehicle to a safe operating condition.

Trades & Technology

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With the estimates shown below, Sarah needs to determine the trade-in (replacement) value of ma­chine X that will render its AW equal to that of machine Y at an interest rate of 8% per year. Deter­mine the RV (a) by hand solution, and (b) using a spreadsheet.

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