Economic life

Economic life,

Definition of Economic life:

  1. Estimating the economic life of an asset is important for businesses so that they can determine when it's worthwhile to invest in new equipment, allocating appropriate funds to purchase replacements once the equipment's useful life is met.

  2. Period over which an asset (machine, property, computer system, etc) is expected to be usable, with normal repairs and maintenance, for the purpose it was acquired, rented, or leased. Expressed usually in number of years, process cycles, or units produced, it is usually less than the assets physical life, and is the period over which the assets depreciation is charged. Also called average life, service life, effective life, mean life, or useful life.

  3. Economic life is the expected period of time during which an asset remains useful to the average owner. When an asset is no longer useful to its owner, then it is said to be past its economic life. The economic life of an asset could be different than its actual physical life. Thus, an asset can be in optimal physical condition but may not be economically useful. For example, technology products often become obsolete when their technology becomes obsolete. The obsolescence of flip phones occurred due to the advent of smartphones and not because they ran out of utility.

How to use Economic life in a sentence?

  1. Financial considerations required for calculating the economic life on asset include its cost at the time of purchase, the amount of time an asset is used in production, and existing regulations pertaining to it.
  2. The economic life of an asset is the period of time during which it remains useful to its owner.
  3. There may be interdependencies in the economic life of two assets in which the life of one depends on the lifespan of another.

Meaning of Economic life & Economic life Definition

Economic Life,

How To Define Economic Life?

Economic Life means, Economic life is a period of time that is expected to be useful to the average owner of an asset. When an asset is no longer useful to its owner, it is said to have outgrown its economic life. The economic life of an asset may differ from its actual physical life. As a result, the asset may be in good physical condition, but it may not be economically viable. For example, when the history of technology expires, most technology products become obsolete. The obsolescence of folding phones is due to the advent of smartphones, not because they are useless.

  • How long does the financial life of an asset last for its owner?
  • The financial decisions required to calculate the economic life of an asset include the cost at the time of purchase, when the asset is used in production and applicable regulations.
  • The economic life of two assets may depend, and the life of one depends on the life of the other.

Meaning of Economic Life: For example, the term of an asset. Property, vehicles, machines, etc. It should be usable, including repair and maintenance, before replacement is necessary.

Literal Meanings of Economic Life

Economic:

Meanings of Economic:
  1. From an economic or financial point of view.

  2. Justification in terms of profit

Sentences of Economic
  1. Government economic policy

  2. To stay accessible, many companies need to grow

Synonyms of Economic

profitable, profit-making, moneymaking, money-spinning, lucrative, remunerative, financially rewarding, fruitful, gainful, productive

Life:

Meanings of Life:
  1. A condition that distinguishes animals and plants from non-components, including the ability to grow, reproduce, function, and change permanently before dying.

  2. The existence of man or animal.

  3. The time between the birth and death of living human beings, especially human beings.

  4. Significance, power or energy.

  5. (In art) Representation of an article from a real model rather than the artist's imagination.

Sentences of Life
  1. The essence of life

  2. A catastrophe that killed 266 Americans

  3. He spent his entire life in the countryside

  4. She is beautiful and full of life

  5. Your poses and clothes are taken from life

Synonyms of Life

existence, being, living, animation, aliveness, animateness, person, human being, individual, mortal, soul, creature, lifetime, life span, days, duration of life, allotted span, course of life, time on earth, one's time, one's career, threescore years and ten, this mortal coil, vivacity, liveliness, vitality, verve, high spirits, sparkle