Assume You Have Been Hired to Appraise a Local Hospital

question 37

Multiple Choice

Assume you have been hired to appraise a local hospital. Your best estimate of the reproduction (or replacement) cost of the building is $3,700,000. However, upon evaluating the use of land in the local area, you have deemed the value of the site to be worth an additional $800,000. If the building has depreciated by $500,000 over its lifetime and there are no further depreciation losses due to external or functional obsolescence, what is the indicated value of the hospital using the cost approach?

• A) $2,400,000
• B) $3,700,000
• C) $4,000,000
• D) $4,500,000

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Definitions:

Heterosexual Married Men

Adult males who are married to women, surrounding discussions often include aspects of gender role expectations and sexuality.

Gay Men

Males who experience romantic and/or sexual attraction to other males.

Batterer Intervention Programs

Structured programs designed to rehabilitate individuals who have committed acts of domestic violence, aiming to change abusive behaviors through education and counseling.

Financial Resources

Monetary assets and forms of capital that individuals, organizations, or governments have available for spending, investing, or saving.