Property Valuation

In South Dakota real estate, 'economic life' of a building refers to:

AThe physical lifespan of the building's structure
BThe period during which improvements contribute to the property's value✓ Correct
CThe number of years until the mortgage is paid off
DThe time since the building was last renovated

Explanation

Economic life is the period over which improvements contribute positively to the property's value. It may be shorter than the physical life if the building becomes economically obsolete before it physically deteriorates.

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