Property Valuation
In the cost approach to appraisal, 'reproduction cost' differs from 'replacement cost' in that:
AReproduction cost uses current materials; replacement cost uses original materials
BReproduction cost is the cost to build an exact replica; replacement cost is the cost to build a functionally equivalent structure✓ Correct
CReproduction cost is always higher than replacement cost
DThere is no meaningful difference between the two
Explanation
Reproduction cost is the cost to build an exact duplicate of the existing structure using the same materials and design. Replacement cost is the cost to build a functionally equivalent structure using current materials and modern design standards.
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