minimum life
present value life
economic life
transaction life
✅ The correct answer is C.
Life that maximizes net present value of an asset is classified as economic life. Economic life is the period over which an entity expects to be able to use an asset, assuming a normal level of usage and preventive maintenance.
Life that maximizes net present value of an asset is classified as economic life. Economic life is the period over which an entity expects to be able to use an asset, assuming a normal level of usage and preventive maintenance.