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Consider the land valuation data provided in the table below which shows how the benefits and cost of land use are impacted by a catastrophic

Consider the land valuation data provided in the table below which shows how the benefits and cost of land use are impacted by a catastrophic wind storm:

No Storm ((90%) Storm (10%)
Benefits $2,000 $0
Costs $1,500 $1,500
Net Benefits

Assuming a 5 percent interest rate, what is the expected price for land?

Group of answer choices

$10,500

$2,000

$300

$6,300

Consider the previous land valuation question. What is the actuarily accurate insurance premium

Group of answer choices

$0

$1,700

$200

$300

Consider the previous land valuation question again. Suppose government subsidizes the insurance premium by 75 percent. What is the value of land?

Group of answer choices

$1,550

$6,300

$450

$9,450

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