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19

Replacement

An exchange or substitution of an asset by another having the capacity to perform the same function

Replacement may arise from wear-and-tear, obsolescence, premature service failure or destruction through exposure to fire or other hazard. 

In contrast to repair or rebuild, replacement generally involves a complete identifiable item of investment. 

The existing asset is the defender asset, which will (after a value engineering selection process) be replaced by a challenger asset.


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