Economic life
Economic life is the number of years a project should be operated to maximize its net present value; often less than the maximum potential life.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Economic life. The number of years a project should be operated to maximize its net present value; often less than the maximum potential life.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
