replacement cost method
Definition
Business valuation method in which its replacement cost (instead of its liquidation value) is considered which is usually higher than the book value (because depreciation is not taken into account). Liabilities are deducted from the replacement cost to arrive at the value of the business. Also called replacement value method.
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replacement cost method is in the Accounting & Auditing, Banking, Commerce & Finance and Decision Making, Problem Solving, & Strategy subjects.
replacement cost method appears in the definition of the following term: replacement value method
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