What is amount of insurance on your personal property

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Reference no: EM131567789

1. AA, Inc. is considering the purchase of ZZ Co. AA believes that ZZ Co. can generate cash flows of $65,000, $98,000, and $174,000 over the next three years, respectively. After that time, AA feels ZZ will be worthless. AA has determined that a 12% rate of return is applicable to this potential purchase. What is the fair price for ZZ Co.?

A. $247,640.12

B. $256,114.70

C. $260,010.48

D. $264,218.44

E. $275,018.24

2. You own a single-family home insured for $240,000 under a standard homeowner's insurance policy. What is the amount of insurance on your personal property?

a. $24,000

b. $100,000

c. $120,000

d. $240,000

Reference no: EM131567789

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