Whole Useful Life

Formal

The life expectancy of an asset engaged in the efficient running of a business. A milk float has a life expectancy of 20-30 years - it’s hard to see something bigger and better replacing it. A PC may have a useful life of 2-3 years, as it’s likely that a more efficient or cheaper version will render it obsolete. Important in leasing - for On / Off Balance sheets decisions.

Real-world Example

A piece of machinery has a whole useful life of 10 years, after which it's expected to be worn out or obsolete - the full period over which its cost is depreciated and its value to the business is realised.