XYZ Company insured its building on a replacement cost basis for $450,000 under a property insurance policy that included an 80 percent coinsurance clause.The building had a replacement cost of $500,000 when it sustained a $50,000 loss.How much will XYZ Company receive from its insurer,assuming no deductible applies?
A)$42,500
B)$45,000
C)$50,000
D)$56,250

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The Answer of XYZ Company insured its building on a replacement cost basis for $450,000 under a property insurance policy that included an 80 percent coinsurance clause.The building had a replacement cost of $500,000 when it sustained a $50,000 loss.How much will XYZ Company receive from its insurer,assuming no deductible applies?
A)$42,500
B)$45,000
C)$50,000
D)$56,250

XYZ Company Insured Its Building on a Replacement Cost Basis