Property Valuation
The principle of anticipation holds that a property's value is based on:
AThe cost to replace the property today
BThe present value of future benefits (income, use, enjoyment) expected from the property✓ Correct
CThe price similar properties sold for last year
DThe original purchase price plus improvements
Explanation
The principle of anticipation states that value is created by the expectation of future benefits. Buyers pay today based on what they anticipate receiving in the future — income, appreciation, or use.
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