What type of reinsurance contract involves two companies automatically sharing their risk exposure?

1 answer:

5 0

The appropriate response is Treaty. It is an understanding under worldwide law went into by performing artists in global law, to be specific sovereign states and universal associations.
A settlement is an official, express composed assention that states use to legitimately tie themselves. A settlement is an official archive which communicates that understanding in words, and it is likewise the target result of a stately event which recognizes the gatherings and their characterized connections.

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. Alternative A has a first cost of $20,000, an operating cost of $9,000 per year, and a $5,000 salvage value after 5 years. Alt

JulsSmile [24]

Answer and Explanation:

The computation is shown below:

NPW of X is

= -$20,000 - $9,000 × (P/A,12%,5) + $5,000 × (P/F,12%,5)

= -$20,000 - $9,000 × 3.604776 + $5,000 × 0.567427

= -$49,605.85

And,

NPW of Y is

= -$35,000 - $4,000 × (P/A,12%,5) + $7,000 × (P/F,12%,5)

= -$35,000 - $4,000 × 3.604776 + $7,000 × 0.567427

= -$45,447.11

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