Property Valuation
What is 'entrepreneurial profit' in the cost approach to Delaware appraisal?
AThe profit earned by the developer or entrepreneur for undertaking the risk and effort of development✓ Correct
BThe amount paid above reproduction cost for a historically significant property
CThe profit expected from leasing a newly constructed property
DThe appraiser's profit on a complex assignment
Explanation
Entrepreneurial profit is the amount over and above costs that a developer expects to earn for the risk and effort of development. It is sometimes added to replacement cost in the cost approach to reflect total investment required.
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