Property Valuation
Which type of depreciation in the cost approach is considered incurable because it arises from outside the property?
APhysical deterioration
BFunctional obsolescence
CExternal (economic) obsolescence✓ Correct
DAccrued depreciation
Explanation
External (economic) obsolescence is caused by factors outside the property boundaries—like a new highway, industrial facility, or neighborhood decline—and is generally considered incurable.
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