Multiple Choice
Which of the following is one reason that construction lenders typically prefer the cost approach to valuation over the income approach?
A) The cost approach provides a more conservative estimate of value
B) The cost approach provides a more optimistic estimate of value
C) The cost approach is a good indication of the expected value of an income-producing property once construction is complete and it has been leased-up
D) The cost approach is a better estimate of actual market value of the project
Correct Answer:
Verified
Correct Answer:
Verified
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