Cost-avoidance benefits refer to expenses that would be necessary if a new system is not installed.

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Cost-avoidance benefits are benefits that result from avoiding future costs that would have been incurred if a certain action or decision were not taken. In the case of a new system installation, cost-avoidance benefits would refer to expenses that would be necessary if such a system is not installed, such as maintenance costs, repair costs, or inefficiencies that can lead to higher operating costs.

Cost-Avoidance Benefits Refer to Expenses That Would Be Necessary If