MIL-HDBK-1004/10
APPENDIX B
ECONOMIC LIFE GUIDELINES*
To provide a basis for comparison between competing projects, economic lives
are established for the general investment classifications listed below.
These are guidelines to be used in the absence of better information.
However, due to the constraints of mission life and technological life, the
economic life chosen should not exceed the applicable figure below.
1.
ADP Equipment....................................
8 years
2.
Buildings
a.
Permanent.................................... 25 years
b.
Semipermanent, nonwood....................... 25 years
c.
Semipermanent, wood.......................... 20 years
d.
Temporary or rehabilitated................... 15 years
3.
Operating Equipment............................... 25 years
4.
Utilities, Plants, and Utility
Distribution Systems............................ 25 years
(This category includes investment projects for electricity,
water, gas, telephone, and similar utilities.)
5.
Energy Conserving Assets
a.
Insulation, solar screens, heat recovery
systems, and solar energy installations...... 25 years
b.
Energy Monitoring and Control Systems........ 15 years
c.
Controls (e.g., thermostats, limit switches,
automatic ignition devices, clocks,
photocells, flow controls, temperature
sensors,etc.)................................ 15 years
d.
Refrigeration compressors.................... 15 years
*Source:
NAVFAC P-442, Economic Analysis Handbook.
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