Property Valuation
In the cost approach, the formula for estimating value is:
ALand value + Reproduction cost new − Depreciation✓ Correct
BSales price of comparable + Adjustments
CNOI ÷ Capitalization rate
DGross rent × Gross rent multiplier
Explanation
The cost approach formula is: Value = Land value + Cost of improvements (reproduction or replacement cost new) minus Accrued depreciation. Land is always valued separately since land itself does not depreciate.
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