replacement cost

Definitions (2)
Related Terms
1. Current cash outlay necessary to duplicate an item.
2. Current cost of replacing an existing asset or property with the same quality of construction and operational utility, without taking depreciation into account. Replacement cost is usually higher that the item's book value. Also called replacement value.

Use 'replacement cost' in a Sentence

The replacement cost of the item was really high and it made me worry that we would lose a lot of money.
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The copier is the accounting department finally made it's last copy, so the replacement cost had to be determined before shopping for a new one could begin.
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You need to know what any replacement cost would be for your equipment and hope to keep using the old ones as long as possible.
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