The life of equipment includes the economic life, depreciation life, service life, physical life, and technical life of the equipment. To correctly determine the economic life of a piece of equipment has a certain degree of difficulty. On the one hand, due to technological development, the emergence of new equipment will make the original equipment in the original calculation of its economic life before the need for early renewal;
On the other hand, the economic life of the same equipment will be due to the use of its occasions, routine maintenance, as well as the future of the market, the cost of the combination of unforeseen factors and different.
For example, the same car, foreign car rental companies to provide customers with rental cars, the economic life of the car is much shorter than the economic life of privately owned cars, that is the reason.
Expanded Information
The economic life of equipment is a fairly long period of time, even in the rapid technological innovation, the economic life of the average equipment has a few years to a dozen years. As mentioned earlier, equipment life cycle costs can be divided into two parts: equipment costs (or original costs) and utilization costs.
Original costs are the high costs that users pay centrally to acquire equipment. The use of costs, also known as maintenance costs or operating costs, is the user in the acquisition of equipment, in order to ensure that the normal operation of the equipment until the time of renewal and often need to spend a variety of costs (such as operating costs, energy consumption costs, maintenance and repair costs, insurance costs, etc.), and sometimes equipment failure downtime caused by the loss of the calculations into it.
Baidu Encyclopedia - Technical Life of Equipment