Identify the typical approaches to valuing property

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Reference no: EM131991168

1. Identify the typical approaches to valuing property?

2. Explain why risk management professionals do not rely on the book value of a property?

3. Explain the circumstances in which a risk management professional may choose functional replacement cost as a means of valuing property?

4. Explain the circumstances in which a risk management professional may choose market value as a means of valuing property?

5. Explain when economic value would be used for risk management purposes?

Application Question

6. Children’s' Hospital was built two years ago on property donated by a philanthropist. The former home of the philanthropist, a fifty-room mansion, is now part of the hospital and is used as offices. What approaches might the hospital's risk management professional use to value its property?

Reference no: EM131991168

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