I am learning Java using the book Java: The Complete Reference. Currently I am working on the topic Recursion.
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The key point that you missing here is that the variable "result" is a stack variable, and as such it does not get "replaced". To elaborate, every time fact is called, a NEW variable called "result" is created internally in the interpreter and linked to that invocation of the methods. This is in contrast of object fields which linked to the instance of the object and not a specific method call