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Topical Terminology > Repeated Plant Assumption



1 Definition

Repeated Plant Assumption

For Repeated Plant Assumption we have a term and definition in Economics.



Repeated Plant Assumption (Economics)

In a comparative economic study, each study alternative must provide the same service capacity and service life. This goal is achieved by repeating capital, revenue and expense cash flows from all the studies as necessary to terminate all studies at the same future time to provide an equal amount of service. Because monies have a smaller and smaller effect on the economic evaluators as the monies extend farther and farther into the future, some organizations will mandate that the studies will be truncated at some future point in time where the impact of truncation will hopefully be minimal.




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