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Economic life is the amount of time something, like a building, can be used to make money or be useful before it gets too old or worn out. It's the period when the building is worth keeping and maintaining, after which it's better to replace it or make major changes.
For example, imagine a family buys a house to live in and rent out part of it to others. The house might have an economic life of 40 years. During these 40 years, the family can make money from renting it, and the house is still in good shape. But after 40 years, the house might need lots of repairs, and it would cost more to keep fixing it than to build a new one or renovate it completely. So, the house's economic life is 40 years.
"Wit & Whimsy with the Dumb Ox: Unlocking Knowledge with Rhyme:"
Economic life is a special term,
That tells us when a building might lose its charm!
It's how long a building can be useful to you,
Based on how you use it, and what you do.
Imagine an apartment building that's quite grand,
If it's well-built and maintained, it's value will stand.
Its economic life might be 30 years,
Before it becomes outdated and brings us tears.
So remember, economic life is a measure,
Of how long a building can give you pleasure!
It's based on quality, maintenance, and more,
And helps us know when a building's value might soar!
And if we add this data that's new,
Economic life is also about the value it can accrue!
It tells us when an improvement will return,
And when its use might become something to spurn.