True or False

1. Increased cost of raw material, labor, or utilities (without an offsetting increase in product price) and reduced demand for the product are examples of External Obsolescence.

2. The income approach is appropriately used in valuing integrated manufacturing facilities or production lines, or quantifying the after-tax penalties for obsolescence.

3. Trademarks and trade names are examples of market-related intangible assets.

4. The income approach is more commonly employed in determining the value of an individual piece of machinery and equipment than the other approaches.

5. The presence of ghost assets that linger on the books years after being physically retired is a disadvantage of the trending approach in a determining the current cost new of a machinery and/or equipment.

6. Income approach allows each individual asset to be appraised and is the best determinant of value for a special-purpose asset or one without an active secondary market.

7. Increased competition, inflation or high interest rates are examples of Economic Obsolescence.

8. M&E appraisals tend to be less location specific than real estate.

9. The cost approach is primarily used in the valuation of integrated production facilities or special-purpose assets, such as railcars, refineries, utilities, landfills, and mineral extraction.

10. Functional Obsolescence is the loss in value or usefulness of a property due to the using up or expiration of its useful life caused by wear and tear, deterioration, exposure to various elements, physical stresses, and similar factors.