Property Valuation
In Tennessee, the 'replacement cost new' in the cost approach is the cost to build:
AAn exact replica of the existing structure
BA functionally equivalent structure using modern materials and techniques at current prices✓ Correct
CThe least expensive structure that satisfies the same function
DThe most expensive structure on the market
Explanation
Replacement cost new is the cost to construct a functionally equivalent structure using modern materials, designs, and construction techniques at current price levels, as opposed to reproduction cost (exact replica).
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