Real Estate Math
An Indiana building's replacement cost new is $650,000 and the land is worth $100,000. The building has 25% accrued depreciation. What is the value by the cost approach?
A$487,500
B$587,500✓ Correct
C$600,000
D$650,000
Explanation
Depreciated building value = $650,000 × (1 − 0.25) = $650,000 × 0.
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