The article discusses how replacing physical assets at the right time can save money for a company. By timing replacements efficiently, companies can create more value and increase their profits. This timing is based on the cost of capital and current information. Coordinating replacements at these optimal times can lead to better cash flow in the future. This strategy may involve using extended service contracts to manage risks. Overall, this approach can help companies make smarter decisions about when to replace their physical assets, leading to potential financial gains.