physical life

physical life definition - business

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. See also economic life.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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