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Financial Terms | |
Replacement-chain problem |
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Definition of Replacement-chain problemReplacement-chain problemIdea that future replacement decisions must be taken into account in selecting
Related Terms:Agency problemConflicts of interest among stockholders, bondholders, and managers. agency problemsConflicts of interest between the firm’s owners and managers. Asset substitution problemArises when the stockholders substitute riskier assets for the firm's existing ReplacementThis subject of replacement of existing policies is covered because sometimes existing life insurance policies are unnecessarily replaced with new coverage resulting in a loss of valuable benefits. If someone suggests replacing your existing coverage, insist on having a comparison disclosure statement completed. Replacement Capital ExpendituresCapital expenditures required to replace productive Replacement costCost to replace a firm's assets. replacement costan amount that a firm would pay to replace an asset or buy a new one that performs the same functions as an asset currently held ![]() Replacement costThe cost that would be incurred to replace an existing asset with one having the same utility. Replacement cycleThe frequency with which an asset is replaced by an equivalent asset. Replacement partsParts requiring some modification before being substituted Replacement valueCurrent cost of replacing the firm's assets. Replacement ValueThe amount necessary to duplicate a company's assets at current Replacement ValueCost of acquiring a new asset to replace an existing asset with the same functional utility. Stock replacement strategyA strategy for enhancing a portfolio's return, employed when the futures supply-chain managementthe cooperative strategic planning, Underinvestment problemThe mirror image of the asset substitution problem, wherein stockholders refuse ![]() value chainthe set of processes that converts inputs into Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |