Property Valuation
Which type of depreciation is caused by factors external to the property, such as a nearby industrial plant?
APhysical deterioration
BFunctional obsolescence
CEconomic (external) obsolescence✓ Correct
DIncurable depreciation
Explanation
Economic (external) obsolescence is a loss in value caused by factors outside the property, such as neighborhood decline, proximity to nuisances, or adverse economic conditions. It is always considered incurable.
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