Property Valuation

Which of the following would increase a property's value using the cost approach?

APhysical depreciation of the building
BAn addition of a new garage✓ Correct
CFunctional obsolescence due to outdated design
DEconomic obsolescence from nearby industrial development

Explanation

Adding improvements such as a new garage increases reproduction or replacement cost, which increases the property's value under the cost approach (before depreciation). Depreciation and obsolescence reduce value.

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