5. a) A valuer estimated the value of a house 827,500 with the use of Cost Method. The house is located in a residential area with 140% density and recently erected. The replacement cost is given from the quantity Surveyor and the land value is estimated based on comparable transactions from sales of vacant land plots in the vicinity. Do you agree with this approach? What might be wrong? Land Value 550 sq.m. x 800 /sq.m. = 440,000 Replacement Cost 250 sq.m. x 1550 /sq.m. 387,500 Market Value 827,500 b) A valuation was prepared for the Kings Avenue Mall as per the table below. Do you agree with this approach? If not, what are the problems you observe? Kings Avenue Mall 2017 2018 2019 7,700,000 7,800,000 8,250,000 25% 35% 40% Net Income weight Valuation Net Income Yield MV 7,955,000 weighted average of the 3 yr 7% 113,642,857