Meaning of “replacement cost” in the English Dictionary

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"replacement cost" in Business English

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replacement costnoun [ C ]

uk us also cost of replacement

INSURANCE, FINANCE the amount of money it costs to replace something that is damaged, lost, stolen, etc. with something new:

The estimated replacement cost is $800,000.
In times of inflation the replacement cost of an asset may be much greater than its original cost.

(Definition of “replacement cost” from the Cambridge Business English Dictionary © Cambridge University Press)