Property Valuation
In the cost approach, the value formula is:
ALand Value + Reproduction Cost New – Depreciation✓ Correct
BNOI ÷ Cap Rate
CSale Price × GRM
DAdjusted Comparable Sale Price
Explanation
The cost approach formula is: Land Value + Reproduction (or Replacement) Cost New – Accrued Depreciation = Value. Land is never depreciated.
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