Property Valuation
In the cost approach, 'reproduction cost' differs from 'replacement cost' because:
AReproduction cost uses current building codes; replacement cost uses original codes
BReproduction cost is the cost to build an exact replica; replacement cost is the cost to build a functionally equivalent structure using modern materials✓ Correct
CReplacement cost is always lower than reproduction cost
DReproduction cost includes land value; replacement cost does not
Explanation
Reproduction cost estimates building an exact duplicate using the same materials and methods. Replacement cost estimates building a functionally equivalent structure using modern materials and current construction methods, which is more commonly used.
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