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Just destroy and rebuild right. Today, we have so much experience with building things, as if every invoice is ready to be sent to order every piece of a build
by laurent92 5y ago
Just destroy and rebuild right.
Today, we have so much experience with building things, as if every invoice is ready to be sent to order every piece of a building, that we don’t have experience with repairing.
Moreover, insurances tell us that a desk or a telecom switch devaluates 25% per year, so we value the existing furnished building to basically scrap value after 5 years. But insurances evaluate at the resale price. But an equipment in-place and working has at least 90% of its purchase value for 3-10 years, if not 125% of its purchase value, since it would cost a lot of maintenance to scrap and re-plug a new one.
If insurances/accounting rules admitted that equipments are worth 90% of their purchase price for 3 years, we would put more value into repairing things. Our replacement culture is rooted in the way we perform accounting.