|Reproduction Cost (of a Facility)|
The cost of construction, at current prices, of an exact duplicate, or replica facility, using the same materials, construction standards, design, layout, and quality of workmanship, and embodying all of the deficiencies, superadequacies, and obsolescence of the subject building.
Similar to the replacement cost, this cost is also commonly used in the cost approach to value in an appraisal.
The reproduction cost is the denominator in the following facility indexing formulas:
|(c) Copyright Asset Insights, 2000-2013, All Rights Reserved. "Insight, foresight and oversight of assets"|