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John Biner's Roof Was Totally Ruined by a Fire

Question 23

Multiple Choice

John Biner's roof was totally ruined by a fire.The insurance company estimates that the cost of building a new roof is $10,000.It also estimates that roofs like this are expected to last 20 years.The existing roof had been in place for five years.Given this information,the replacement cost is


A) $500.
B) $2,500.
C) $7,500.
D) $10,000.

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