economic life

The time period over which an asset's NPV is maximized. Economic life can be less than absolute physical life for reasons of technological obsolescence, physical deterioration, or product life cycle. Bloomberg Financial Dictionary

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economic life economic life life

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economic life UK US noun [C] (also useful life, effective life) ACCOUNTING
the length of time that an asset is expected to continue to be useful, or how long the asset can be used before repairing it becomes more expensive than replacing it: »

Technological assets become obsolete so fast that their economic life is often shortened.

Financial and business terms. 2012.

Look at other dictionaries:

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  • economic life — Useful or profitable life of property, which may be shorter than the physical life. See also economic obsolescence …   Black's law dictionary

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  • economic life — Econ the conditions of trade and manufacture in a country that contribute to its prosperity or poverty …   The ultimate business dictionary

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  • useful economic life — The period for which the present owner of an asset will derive economic benefits from its use. Under Statement of Standard Accounting Practice 12, Accounting for Depreciation, an asset should be depreciated over its useful economic life …   Big dictionary of business and management

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