Property Valuation
Economic life in appraisal refers to:
AThe physical life of a structure
BThe period over which improvements contribute positively to property value✓ Correct
CThe remaining mortgage term
DThe number of years since construction
Explanation
Economic life (or useful economic life) is the period during which an improvement contributes positively to the property's total value. When operating costs exceed income, the improvement has reached the end of its economic life, even if it is still physically standing.
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