Property Valuation
Which type of depreciation in the cost approach is considered incurable because it is caused by factors external to the property?
APhysical deterioration — curable
BFunctional obsolescence — curable
CExternal (economic) obsolescence✓ Correct
DPhysical deterioration — incurable
Explanation
External or economic obsolescence results from factors outside the property, such as neighborhood decline, proximity to a highway, or market conditions. It is always considered incurable since the owner cannot fix external factors.
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