Both exit value and replacement cost are valuation systems that fall into the current value category.

Question

Quizplus · Accepted Answer

Both exit value and replacement cost are focused on determining the current value of an asset or property. Exit value refers to the price at which an asset can be sold in the current market, while replacement cost calculates the cost of replacing an asset at its current value. Both methods consider the current market conditions and are therefore categorized as current value valuation systems.

Both Exit Value and Replacement Cost Are Valuation Systems That