AAFM Exam CWM_LEVEL_2 Topic 2 Question 84 Discussion

Actual exam question for AAFM's CWM_LEVEL_2 exam

Question #: 84
Topic #: 2

Section B (2 Mark)

Reproduction cost has been estimated as Rs 350,000 for a property with a 70-year economic life. The current effective age of the property is 15 years. The value of the land is estimated to be Rs 55,000. What is the estimated market value of the property using the cost approach, assuming no external or functional obsolescence?

ARs 3,30,000

BRs 3,45,500

CRs 2,50,000

DRs 2,75,000

Show Suggested Answer

Suggested Answer: B

by Mozell at Aug 06, 2024, 06:30 AM

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Mari

1 months ago

Wait, where's the formula for this? I knew I should have brought my real estate cheat sheet.

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Corazon

1 months ago

I bet the answer is a prime number. Because why not? *chuckles*

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Lorrine

5 days ago

D) Rs 2,75,000

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Georgene

7 days ago

C) Rs 2,50,000

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Joseph

8 days ago

B) Rs 3,45,500

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Felicitas

12 days ago

A) Rs 3,30,000

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Samira

1 months ago

Ah, the cost approach. Time to put on my calculator hat and crunch some numbers!

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Simona

3 days ago

A) Rs 3,30,000

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Walton

2 months ago

Hold up, is this a trick question? I better double-check my work.

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Nathan

2 days ago

Let's go with A) Rs 3,30,000 then. It seems to be the most reasonable option.

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Chun

3 days ago

I agree, the reproduction cost and current age are key factors in determining the market value.

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Lovetta

4 days ago

I think it's A) Rs 3,30,000.

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Lorriane

5 days ago

D) Rs 2,75,000

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Lenora

9 days ago

C) Rs 2,50,000

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Magnolia

17 days ago

B) Rs 3,45,500

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Dante

22 days ago

A) Rs 3,30,000

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Christa

2 months ago

Okay, let's think this through step-by-step. I feel like I'm missing something, but I'll give it my best shot.

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Vallie

2 months ago

Hmm, this seems like a straightforward cost approach calculation. Let me see if I can work this out.

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Leslee

24 hours ago

That's incorrect. Remember to account for the reproduction cost and land value in the cost approach.

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Kristel

2 days ago

C) Rs 2,50,000

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Marvel

4 days ago

That's incorrect. Make sure to consider the effective age of the property in your calculation.

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Mertie

5 days ago

B) Rs 3,45,500

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Erasmo

2 months ago

That's correct. The reproduction cost minus depreciation plus land value gives the estimated market value.

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Edmond

2 months ago

A) Rs 3,30,000

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Selma

2 months ago

I agree with Veronique, the answer should be B) Rs 3,45,500 considering the reproduction cost and the current effective age of the property.

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Veronique

3 months ago

I disagree, I believe the answer is B) Rs 3,45,500 because the reproduction cost is Rs 350,000.

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Natalya

3 months ago

I think the answer is A) Rs 3,30,000.

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