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Replacement Cycle

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Replacement cycle
The frequency with which an asset is replaced by an equivalent asset.

Replacement Cycle
A period of time between the purchase of an asset and its replacement with an equivalent asset. The replacement may be the result of the end of the asset's absolute physical life or its obsolescence or some other reason. It is especially important in the information technology industry in which improvements occur with (sometimes variable) frequency. See also: Depreciation.


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