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Assume you have been hired to appraise a local hospital. Your best estimate of the replacement cost of the building is $5,400,000. However, upon evaluating

Assume you have been hired to appraise a local hospital. Your best estimate of the replacement cost of the building is $5,400,000. However, upon evaluating the use of land in the local area, you have deemed the value of the site to be worth an additional $760,000. If the building has depreciated by $1,400,000 over its lifetime and there are no further depreciation losses due to external or functional obsolescence, what is the estimated value of the hospital using the cost approach?

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