Property Valuation
In the cost approach, what does 'reproduction cost' mean?
AThe cost to build a functionally equivalent but updated building
BThe cost to build an exact replica of the existing improvement using the same materials✓ Correct
CThe land value as estimated by the county assessor
DThe cost to demolish and remove the existing structure
Explanation
Reproduction cost is the cost to construct an exact duplicate of the subject improvement using the same materials, design, and quality of workmanship at current prices. Replacement cost uses modern materials and design to achieve equivalent utility.
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