Property Valuation
Economic life of an improvement refers to:
AThe actual physical age of the structure
BThe period during which the improvement contributes to the value of the property✓ Correct
CThe remaining mortgage term on the property
DThe number of years until the building must be demolished
Explanation
Economic life is the period over which an improvement contributes positively to the overall property value; it may be shorter than the physical life if the structure becomes functionally or economically obsolete.
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