Economic Life

Definition:

The time period over which an asset's NPV is maximized. Economic life can be less than absolute physical life for reasons of technological obsolescence, physical deterioration, or product life cycle.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Up volume

When a stock closes increases in value on a particular day, the volume in that stock is considered up volume. Related: Down volume.

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