Property Valuation
In Oregon appraisal, what is 'economic life' of an improvement?
AThe chronological age of a building since construction
BThe period over which an improvement contributes positively to the value of the real estate✓ Correct
CThe maximum number of years a building can physically stand
DThe remaining years before a building must be demolished
Explanation
Economic life is the period during which an improvement makes a positive contribution to property value. It may differ from physical life (how long a building can stand) and effective age. For appraisal purposes, when an improvement reaches the end of its economic life, it no longer adds value and may need to be replaced or demolished.
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