Property Valuation
In the cost approach, reproduction cost differs from replacement cost in that:
AReproduction cost uses current materials and standards; replacement cost uses identical materials
BReproduction cost creates an exact replica; replacement cost uses current materials and standards to provide equivalent utility✓ Correct
CThey are the same concept
DReplacement cost is always higher
Explanation
Reproduction cost is the cost to build an exact replica of the subject improvement using original materials and methods. Replacement cost is the cost to build a structure of equivalent utility using current materials and standards.
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