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AFE · Question #165

The amount that currently would be required to replace the service capacity of an asset is called:

The correct answer is D. Cost approach. See the full explanation below for the reasoning.

Question

The amount that currently would be required to replace the service capacity of an asset is called:

Options

  • ARisk approach
  • BMarket approach
  • CIncome approach
  • DCost approach

How the community answered

(42 responses)
  • A
    7% (3)
  • B
    2% (1)
  • C
    12% (5)
  • D
    79% (33)

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