Property Valuation
In the cost approach, the value estimate is derived from:
ARecent comparable sales only
BLand value plus the depreciated cost of the improvements✓ Correct
CCapitalized net operating income
DThe gross rent multiplier times annual rent
Explanation
The cost approach estimates value by adding the estimated land value (using sales comparison) to the depreciated cost of reproducing or replacing the existing improvements. Value = Land Value + Depreciated Cost of Improvements.
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