Property Valuation
What is the difference between replacement cost and reproduction cost in the cost approach?
AThey are identical terms
BReplacement cost uses current materials to build a functionally equivalent structure; reproduction cost replicates the exact original✓ Correct
CReproduction cost is always lower
DReplacement cost applies to land; reproduction to buildings
Explanation
Replacement cost is the cost to build a structure with equal utility using current materials and standards. Reproduction cost is the cost to build an exact duplicate of the original structure using the same materials.
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