How Much Insurance? Many financial experts advise that property owners should insure their homes or buildings for at least 80 percent of the amount it would cost to replace the structure. Design a modular program that asks the user to enter the replacement cost of a building and then displays the minimum amount of insurance he or she should buy for the property.

Brandt enterprises is considering a new project that has a cost of $1,000,000, and the cfo set up the following simple decision tree to show its three most likely scenarios. the firm could arrange with its work force and suppliers to cease operations at the end of year 1 should it choose to do so, but to obtain this abandonment option, it would have to make a payment to those parties. how much is the option to abandon worth to the firm?