As a firm’s risk manager, it is your responsibility to ensure the proper amount of insurance is purchased to cover any damages to the firm’s property and assets. In order to purchase the proper amount of insurance to cover these cases, the risk manager must determine how much the property and assets are worth. Determining the worth of the property can be done in two ways: actual cash value and replacement cost. Actual cash value vs replacement cost (2007) defines actual cash value, or market value, as the value of the property or assets that one might ...
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