Real Estate Math
A building in Wilmington, NC has a replacement cost of $420,000 and has depreciated 25%. The lot is worth $85,000. What is the indicated value via the cost approach?
A$315,000
B$400,000✓ Correct
C$420,000
D$505,000
Explanation
Depreciated building value: $420,000 × (1 – 0.25) = $420,000 × 0.
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