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Yes, but your repair skill needs to be past a certain point. The percentage to which you can repair items is directly proportional to your repair skill (E.G. a repair skill of 75 can repair up to 75%). The percent an NPC can repair an item to varies, with the highest being Crazy Wolfgang, a roaming trader, who can repair up to 89% after you have fully invested in his caravan at Canterbury Commons (700 cap investment + repair cost).

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