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Term: Accounting -> Replacement value
Term:

Replacement value

Definition:

Replacement value is a valuation similar to an adjusted book value analysis. Replacement value is different than liquidation value in that is uses the value of the replacement value of assets, which is usually higher than book value. Liabilities are deducted from the replacement value of the assets to determine the replacement value of the business.

Related terms:

Related parties

Prepaid income
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