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 5.1). 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 5.1 Comparable Sale Summary

Sale No.	Date	Sales Price	Acres	Terms	Location	$/Acre	Crop Acres	Pasture Acres
1	6 mo.	$225,000	450	Cash	Avg.	$500	0	450
2	6 mo.	525,000	500	Cash	Avg.	1,050	500	0
3	6 mo.	373,275	525	Cash	Avg.	711	200	325
4	Current	335,625	375	Cash	Avg.	895	300	75
5	1 year	725,900	700	Cash	Avg.	1,037	600	100
6	Current	532,680	690	Cash	Good	772	300	390
7	6 mo.	260,000	300	Cash	Good	867	200	100
8	1 year	535200	446	Seller/Finance	Good	1200	346	100