useful life

(redirected from Economic Lifes)

Useful life

The expected period of time during which a depreciating asset will be productive.

Useful Life

The amount of time, as determined by the IRS, that an asset is expected to be used. The useful life is important in determining taxes assessed on the depreciated value of the asset each year. Theoretically, an asset's useful life is equal to its absolute physical life, but, because the useful life is an estimation, this is not always the case.

useful life

(1) In accounting and taxation,the time period over which an asset is depreciated.(2) In appraisal,the time period during which one can expect a positive cash flow from a property.

References in classic literature ?
I know that it is futile to, spurn them, or lash them for trying to get on in the world, and that the world is what it must be from the selfish motives which underlie our economic life.
Available as an extension to its industry-leading InfoMaster asset management software, InfoMaster LCCA dramatically expands the softwares powerful predictive analytics for enhanced reinvestment decisions by using a rigorous risk-based economic life cycle planning approach to accurately estimate the lifetime performance of water and wastewater pipes plus an in-depth view of the long-term costs of maintaining, operating, upgrading and replacing them.
The goal is to find the point in the assets life cycle or economic life where the cost of replacement is balanced against the expected cost (or consequences) of failure, the accelerating cost to maintain/repair it, and the declining level of service.
It is essential to base any replacement strategy on an economic life cycle basis, rather than short-term benefits such as the pipes initial capital cost, or end-of-service life when the asset can no longer serve its intended purpose, or end-of-physical life when the asset becomes physically non-functioning.
By conducting a wide-ranging risk-based economic life cycle cost analysis, InfoMaster LCCA accurately estimates the lifetime performance of each individual pipe in the water and wastewater network, including their expected failures, repairs and eventual replacement, and the associated costs of optimizing the management of those high-risk assets and helping to preserve structural integrity and ensure that the network operates well into the future at maximum cost savings.