Replacement Asset Value (RAV)
Replacement Asset Value (RAV) is a financial concept used in maintenance operations and management to determine the cost of replacing an asset. It is the estimated cost of replacing an asset with a new one of the same type and quality, taking into account the current market value of the asset and any associated costs such as installation, delivery, and taxes. RAV is used to calculate the cost of replacing an asset when it is damaged, lost, or stolen, and is an important factor in determining the cost of insurance for the asset. RAV is also used to determine the depreciation of an asset over time, as the cost of replacing the asset will decrease as the asset ages.