Meaning of “replacement value” in the English Dictionary

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"replacement value" in Business English

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replacement valuenoun [ C ]

uk us

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

The report estimated the replacement value of the tunnels at $50.5 million.
Keep in mind that replacement value is not the same as market value.


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