Property Valuation
Reproduction cost and replacement cost in the cost approach differ because:
AReproduction cost uses modern materials; replacement cost uses original materials
BReproduction cost builds an exact replica; replacement cost builds a functionally equivalent structure with modern materials✓ Correct
CThey are identical concepts used interchangeably
DReplacement cost always exceeds reproduction cost
Explanation
Reproduction cost = cost to build an exact replica. Replacement cost = cost to build a functionally equivalent structure using modern materials and methods.
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