Property Valuation
The 'reproduction cost' in the cost approach refers to:
AThe cost to build a functionally equivalent but not identical replacement structure
BThe cost to build an exact replica of the existing structure using current prices and materials✓ Correct
CThe original construction cost of the building when first built
DThe depreciated value of the improvements
Explanation
Reproduction cost is the cost to construct an exact duplicate of the subject improvement using the same materials, design, and quality at current prices. Replacement cost, by contrast, estimates the cost to build a functionally equivalent (but not identical) structure using modern materials and methods.
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