Economic Life
Categories: Econ, Accounting
Capital expenditures buying tractor smelting factories take on a life of their own, albeit a financial Frankensteinian one. The notion of economic life originates from the idea that a factory, or other capital expenditure, will be economically productive for some period of time, and then it will die, such that the company burns, buries, or replaces it and buys another. At that point, its economic life is over.