Property Valuation
In the cost approach, the formula for estimating value is:
ALand Value plus Reproduction or Replacement Cost minus Depreciation✓ Correct
BLand Value multiplied by Capitalization Rate
CSale Price of Comparables divided by Number of Comparables
DNOI divided by Cap Rate
Explanation
The cost approach formula: Property Value = Land Value + Reproduction (or Replacement) Cost New - Total Depreciation. Land value is always added because land is not depreciated.
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