Property Valuation
Depreciation in the cost approach to value includes which THREE categories?
APhysical deterioration, functional obsolescence, and economic obsolescence✓ Correct
BAge, condition, and location
CCap rate, NOI, and vacancy
DAcquisition cost, construction cost, and financing cost
Explanation
Accrued depreciation in the cost approach encompasses physical deterioration (wear and tear), functional obsolescence (outdated features/design), and economic/external obsolescence (external negative influences).
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