Valuation method estimates current construction cost, deducts depreciation, adds land value. Used for unique properties when comparables unavailable. This is:
Correct Answer
A) Replacement Cost Approach
Answer A is correct because the Replacement Cost Approach is specifically defined as estimating the cost to construct a building of equivalent utility using current materials, standards, and construction methods — not an exact replica — then deducting accrued depreciation and adding land value to arrive at a total property value estimate. The question's description of 'current construction cost' is the precise distinguishing phrase that identifies this as the Replacement Cost method rather than the Reproduction Cost method, which would use original materials and techniques.
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