Cost approach

Cost approach

1. In this

   • Only one calculation of all costs is needed which are involved in the development and protection of technology to date.
     • And
       • The cost approach is a real estate valuation method that assumes that the price that a buyer must pay for a property must be equal to the cost of building an equivalent building
         • Instead
           • the cost approach estimates the property value as the value of its components
             • And
               • the underlying land
                 • Less
                   • depreciated value of the improvements
                     • The formula is
                       • Property Value = Land Value + (Cost New – Accumulated Depreciation).