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Alice and Tommy have 3 dependent children. Alice earns $125,000 per year. They are taking out insurance on Alice for the next 30 years. Tommy

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Alice and Tommy have 3 dependent children. Alice earns $125,000 per year. They are taking out insurance on Alice for the next 30 years. Tommy expects to get a 9.25% rate of return on the life insurance payoff. Using the earnings multiple approach calculate how much life insurance they need to take out on Alice. $987,440 $1,005,011 $1,105,447 $2,228,553 None of the above

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