Property Valuation
What is the 'reproduction cost' versus 'replacement cost' distinction in Rhode Island appraisal?
AThey are the same; the terms are interchangeable
BReproduction cost is the cost to build an exact replica; replacement cost is the cost to build a substitute with similar utility using current materials and methods✓ Correct
CReproduction cost only applies to historic buildings
DReplacement cost is always higher than reproduction cost
Explanation
Reproduction cost is the cost to create an exact replica of the subject building (same materials, design). Replacement cost is the cost to build a building of equal utility using current materials, standards, and construction methods—which may differ from the original.
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