You have been hired by Agirich Appraisal. Your next assignment is to provide the indicated value for a

subject property using the cost approach. Be sure to adjust for land classification, financing terms, date

of sale, and location. Your associates have already collected unimproved comparable sales that will help

you with your analysis $($see table $5\mathrm{.}1).$ The subject property has $500$ acres in a good location and will be

a cash sell. It has $300$ acres of cropland and $200$ acres of pasture land. There is also an improvement

with a reproduction cost of $$400,000.$ The improvement has an effective age of $15$ years. There is also a

similar property with improvements. The land is valued at $$300,000.$ The reproduction cost of the

improvement is $$450,000$ and has an effective age of $10$ years. This property sold for $$500,000$

Show all of your calculations and supporting tables. Your new "boss" must be able to review your work

and determine if your work has been done correctly. If your analysis is hard to follow, you will be fired

$($poor grade$).$

Table $5\mathrm{.}1$ Comparable Sale Summary