economic life
Also referred to as the useful life. This differs from the physical life of an asset. For example, a computer may have a physical life of 50 years, but its economic or useful life might be five years.
Economic Life
Real Estate Dictionary:
Economic Life
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ECONOMIC LIFE - 1. The estimated period over which an improved property may be profitably used so that ...
ECONOMIC ORDER QUANTITY - the order quantity that minimizes total inventory costs. A total inventory co...
Economic life - Estimated period that a fixed asset will provide benefits to the company.
Economic model - A formal presentation of an economic theory.
Economic life
The period over which a company expects to be able to use an asset.
Useful life ...
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.
Economic Life: Economic life is the period over which real property will yield a return on the investment, over and above the economic or ground rent due to the land.
Economic Life
The expected period of time during which an asset is useful to the average owner. The economic life of an asset could be different than the actual physical life of the asset.
In fact, economic life pursued under these first four rules rapidly became so disorganized that within four years of the 1917 revolution, Soviet production had fallen to 14 percent of its prerevolutionary level.
In the British empire the conditions are reversed; but though the great selfgoverning colonies have withdrawn from the circle, in the hope of building up their own economic life in their own way, ...
A taxpayer's reliance on the economic life of the assets corresponding to the 3-year recovery period is unsupported since recovery periods are statutorily defined by class lives and do not correspond to economic lives.
Although the Italian system was based upon unlimited government control of economic life, it still preserved the framework of capitalism.
This up and down pattern influences all aspects of economic life, including the financial markets. Certain investments or categories of investment that thrive in one phase of the cycle may lose value in another.
For much of human history inflation has not been an important part of economic life. Before 1930, prices were as likely to fall as rise during any given year, and in the long run these ups and downs usually cancelled each other out.
(iii) The lease term is at least 75% of the economic life of the leased asset.
(iv) The present value of the minimum lease payments is 90% or greater of the asset's value.
FIRST RULE OF SCARCITY: The first of seven basic rules of the economy. It is the fundamental fact of economic life that he world is faced with limited resources but unlimited wants and needs satisfied from these resources.
Recommended Citation: ...
- it considers cash flows produced during the whole economic life of the investment;
- it gives different weights to the cash flows related to different time periods;
- its value depends on the importance of the investment value; ...
As a general rule, loans for working capital must be repaid within seven years and loans for fixed assets must be paid for by the end of the economic life of the assets (but not to exceed 25 years).
An operating lease is a short-term lease that is similar to a rental agreement. The contractual commitment covers a time span that is relatively short in relation to the economic life of the asset, ...
Assembly, NY Free Enterprise and Jewish Law: Aspects of Jewish Business Ethics Aaron Levine, Ktav Publishing House, 1980 The Challenge of Wealth, Meir Tamari, Jason Aronson Inc., 1995 With All Your Possessions: Jewish Ethics and Economic Life, ...
In leasing, it's the value, either fair market value or some stated value, at the end of the lease. In finance and accounting, it's the fair market value at the end of the equipment's design or economic life or life in the business.
If a company is not publicly traded and does not maintain a reserve set aside out of earnings, it probably won't maintain profitability. Its remaining economic life could be shortened considerably without attention to and maintenance of earnings.
 See also: Expense, Banks, Operating profit, Dependence, Assumptions
  
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