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Negotiating the exchange price of a unit only limits the allowable repair cap for the core unit. Southeast Aerospace's exchange transactions are based on the return of economically repairable core unit. Once the core is received and evaluated, the core repair cost incurred by SEA cannot exceed 80% of the original exchange price. That is, it cannot cost SEA more than 80% of the original OH/SV exchange price collected from the customer. Therefore, when and if an SEA exchange price is discounted, there is a risk that additional charges may be assessed once the core is returned and evaluated.
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