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hi there everyone I am Lance bin speaker you beat one of the account executive at per lemon for todayamp;#39;s video we are going to discuss replacement Value method while the Book Value method offers convenient determination of the company value the limitation of the Book Value method is that it does not account for the full value of the Nets net Assets Now that would result for average or understatement of value of the net assets recorded in the books the National Association of valuerators and analysts has defined the replacement cost as the cost of similar assets that have the nearest equivalent value as of the valuation date under this method the value of individual assets shall be adjusted to reflect the value relative value or cost equivalent to replace that asset the following are the factors that can affect the replacement value of an asset first one is the age of assets so it is important to know how old the asset is this will enable the valuator to determine the cost relate