Property Valuation
An Alaska waterfront cabin depreciates because a nearby factory was built after the cabin was constructed. This is an example of:
APhysical deterioration
BFunctional obsolescence
CExternal obsolescence✓ Correct
DCurable obsolescence
Explanation
External (economic) obsolescence is caused by factors outside the property — such as the construction of a nearby factory, highway, or other negative land use change. It is typically incurable because the owner cannot control external conditions.
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