Property Valuation
The cost approach to value includes which of the following components?
AGross rent multiplier times monthly income
BLand value + Reproduction/replacement cost of improvements - Depreciation✓ Correct
CSales price of three comparable properties averaged
DCapitalized net operating income
Explanation
The cost approach estimates value as: Land Value + Cost to Reproduce/Replace Improvements - Accrued Depreciation. It is most useful for special-use properties and new construction.
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