Question

When improvements reach the age that the income from the property does not pay a reasonable return on the land value, the property has reached the end of its:

Answer 1

Economic life

Step-by-step explanation:

The economic life or service life or useful life or depreciable life is the number of years over which the income from the asset is more than the maintenance and operation expenditures. It is the period after which the asset is inoperable or cannot be put to commercial profit use

Economic life can also be measured as the number of units exhausted or attained, used or produced, such as the economic life of a car can be listed as 160,934.4 kilometres in place of a listing as having an economic life of three years.