Actuarial Notes

Exam DISC-RM Practice Question 37

Study guide: Exam DISC-RM

A bakery's building is damaged by fire. Repairing it with materials of like kind and quality would cost $250,000, and depreciation on the damaged parts is $70,000. While the bakery is closed it loses $60,000 of income, and it spends $15,000 extra to rent a temporary kitchen for its key orders. Measuring the property damage at actual cash value, what is the total financial consequence of the fire?

  • A) $180,000
  • B) $255,000
  • C) $310,000
  • D) $325,000

Answer this question and see the worked solution

Concepts tested

More questions from this set