Replacement cost

Definition

The term replacement cost refers to the market value of assets plus transaction costs.

According to IFC's 2006 "Glossary of Terms", depreciation of structures and assets should not be taken into account.1

Sources

• International Finance Corporation. 2006. "Glossary of Terms." IFC Policy & Performance Standards and Guidance Notes. Washington D.C.: International Finance Corporation.
  [Last Accessed 1 November 2013]