Property Valuation

In Kansas, the 'economic life' of a building used in the cost approach is:

AThe actual chronological age of the building
BThe period over which improvements contribute positively to the property's value✓ Correct
CThe remaining loan amortization period
DThe time until the building must be demolished

Explanation

Economic life is the estimated period during which improvements contribute value to the property — when the improvements no longer contribute positively, their economic life has ended.

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