Final answer:
d. none of the above.
Replacement cost new is the cost of replacing a property with a new one using modern materials and design, while reproduction cost new replicates the property exactly using the same materials and methods.
The terms can differ, especially in custom-built homes where unique features may increase the reproduction cost compared to replacement cost.
Step-by-step explanation:
The question asks about the difference between replacement cost new and reproduction cost new in the context of property valuation, which is a concept in real estate and business.
These terms are used to estimate the cost of constructing a building or structure from scratch. The replacement cost new is the cost to replace an existing property with a new one of similar function and utility, using modern materials and current standards, codes, and design.
In contrast, the reproduction cost new is the cost to construct an exact replica of an existing property using the same materials, design, and standards as the original, regardless of whether these materials or methods are outdated or obsolete.
The correct answer to the question would be "b. only different in custom-built homes" because custom-built homes may include unique features or use materials that are no longer commonly available, making reproduction cost potentially higher than replacement cost.
In most typical properties, replacement and reproduction costs might be similar, especially in new construction where current materials and methods are already in use. However, they can differ significantly with older or historically significant homes that may require specialized craftsmanship or rare materials to reproduce.