physical life

physical life

The potential service life of an asset before it physically becomes unable to produce a good or service. An asset is often physically able to continue operating but at a cost or rate that renders it economically obsolete. The economic life, as opposed to the physical life, is most important in valuing the asset.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

physical life

The time period during which a real property improvement can be expected to remain in existence.Contrast with useful life.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.