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Actuarial method of computing a replacement factor

Actuarial method of computing a replacement factor— development of a rate of retirement for each age period of the life span of the item, through the use of standard survival curves. These retirement rates are then weighed by the age distribution of the items in use to obtain one weighted replacement factor for a future period of time. The replacement factor for each future period will vary in accordance with the age distribution of the property in use for each of future periods

Category: Defense Terms
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