Property Valuation
In the cost approach, the formula for estimating value is:
ALand Value + Improvements Value
BLand Value + Cost to Reproduce or Replace Improvements − Depreciation✓ Correct
CNOI ÷ Cap Rate
DSale Price of Comps − Adjustments
Explanation
Cost approach: Value = Land Value + (Reproduction/Replacement Cost of Improvements − Accumulated Depreciation).
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