You are valuing a property using the cost approach. The property sits on a $10m lot and the cost of re-building a similar but new structure is $20m. The useful life of the structure is 50 years and this building is 15 years old. Moreover, because it is an older building, the energy costs are $100K higher (per year) compared to similar but recently-built buildings. Report the value of the property in $m. Use straight line depreciation and assume 5% risk-free discount rate. [Enter the answer in million dollar units. For example, if the estimated value is $12,300,000, just report it as 12.3

Answer rating: 100% (QA)

The depreciated value of the building is calculated as follows Depreciated Value of Building Cost of ... View the full answer