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What kind of replacement would be classified as functional obsolescence?
A new roof
Energizing an outdated building's wiring system
Fixing a leaking faucet
Renovating the foundation
The correct answer is: Energizing an outdated building's wiring system
Functional obsolescence refers to a reduction in the value of a property due to changes in design, technology, or usage demands that make it less desirable compared to newer properties. Energizing an outdated building's wiring system is a prime example of functional obsolescence. This action aims to modernize the electrical system of a building that is no longer capable of meeting current power needs or safety standards, highlighting the fact that the existing system is outdated and thus affects the property's functionality and marketability. In contrast, a new roof, fixing a leaking faucet, and renovating the foundation are generally considered necessary repairs or improvements to maintain or enhance the property's structural integrity and aesthetics rather than addressing the property's inherent obsolescence. These repairs do not necessarily relate to the property’s usability in the context of modern requirements, which is the key aspect of functional obsolescence.