Question

There is an important technical difference between the terms reproduction cost and replacement cost. Replacement cost...

There is an important technical difference between the terms reproduction cost and replacement cost. Replacement cost refers to:

The cost of constructing an exact replica building
The cost of constructing a building that would have similar utility to the subject property
The cost of reproducing the subject property
None of the above
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Answer #1

Answer:

There is an important technical difference between the terms reproduction cost and replacement cost. Replacement cost refers to:

B] The cost of constructing a building that would have similar utility to the subject property

Explanation:

There is an important technical difference between the terms reproduction cost and replacement cost. Replacement cost refers to the cost of constructing a building that would have similar utility to the subject property. Reproduction cost is the cost to construct an exact duplicate of the subject structure at today’s costs. Replacement cost is the cost to construct a structure with the same usefulness (utility) as a comparable structure using today’s materials and standards.

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