A new roof costs $10,000. Assume that the value of the roof depreciates 5% per year. If your roof is destroyed by fire after five years, then
A)
actual cash value is $7,500 and replacement cost is $10,000.
B)
actual cash value and replacement cost are $7,500.
C)
actual cash value and replacement cost are $10,000.
D)
actual cash value is $7,500 and replacement cost is $2,500.
A
You might also like to view...
Which of the following is the most likely indicator of contractual incapacity?
A. a lucid interval B. dementia C. ratification D. old age
Which of the following existing agreements includes Costa Rica, Nicaragua, and the United States?
A. NAFTA B. FTAA C. APEC D. ASEAN E. CAFTA-DR
Suppose Ace International Company decides at t+18 to use a six-month contract to hedge the t + 24 receipt of yen from Kensui Incorporated. Six-month interest rates (annualized) at t + 18 are 5.9% in dollars and 2.1% in yen
The 6 month forward rate at time t + 18 is ¥128.58. With this hedge in place, what fixed dollar amount would Ace have paid and received at time t + 24? What will be an ideal response?
Voluntary bankruptcy is a situation in which one or more creditors file a bankruptcy petition against the debtor.
Answer the following statement true (T) or false (F)