Replacement cost of the similar house

Reference no: EM139384

Q. Jasmine bought a 20 year-old house for= $200,000. House had the originally evaluated useful life of 80 years. Jasmine insured house for= $200,000. Replacement cost of the similar house, with similar materials also quality is= $240,000. House is totally destroyed in the tornado. Based on actual cash value rule, how much will Taylor collect from her insurer (ignore any deductibles)? If loss occurs in state with valued policy law, how will she collect from her insurer (ignore any deductible)? Calculate company's weighted average cost of capital (WACC)?

Reference no: EM139384

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