Property Valuation
In the cost approach, the reproduction cost differs from replacement cost in that:
AReproduction cost is always lower than replacement cost
BReproduction cost duplicates the original structure with the same materials; replacement cost uses modern materials and standards✓ Correct
CReplacement cost applies only to commercial buildings
DReproduction cost cannot be used for insurance purposes
Explanation
Reproduction cost is the cost to construct an exact replica of the subject building using the same materials, design, and workmanship. Replacement cost is the cost to build a functionally equivalent structure using current materials and construction methods.
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