Question $2$

You are tasked with evaluating a property that had gone through some modifications with the

following dimensions. The living room, bedroom and kitchen were remodeled where the cost of

remodeling per square footage are $$200,$ $$150$ and $$300$ for the bedroom, living room and kitchen

respectively. The square footage are $500,700$ and $400$ for the bedroom, living room and kitchen

respectively. The rate of depreciation to the improvements every year is $3\%.$ All improvements

were made $5$ years ago. The unit comes with a fireplace which the prospective buyer wants

removed. Removing the fireplace costs $$2,000.$ The property lot is valued at $$50,000$ and its net

upkeep cost $($depreciated site improvements$)$ is $$3,000.$ Calculate the indicated value for this

property.