Replacement Chain

 

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Replacement Chain

A concept that views a capital investment as an indefinite commitment to a specific type of technology. The ../../finance-glossary/ment chain concept can be used to allow the comparison of mutually exclusive investments with unequal lives.



Replacement Chain

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The frequency with which an asset is ../../finance-glossary/d by an equivalent asset.


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Insurance that pays out the full amount required to ../../finance-glossary/ damaged property with new property, without taking into account the depreciated value of the property.


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Idea that future ../../finance-glossary/ment decisions must be taken into account in selecting among projects.


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A policy that covers the full cost of replacing damaged property without any allowances or deductions, e.g., depreciation.


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