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CIPS L4M7 Exam - Topic 2 Question 75 Discussion

Actual exam question for CIPS's L4M7 exam

Question #: 75
Topic #: 2

[All L4M7 Questions]

What is meant by the economic life of an asset?

AIt is the age beyond which it is not worth keeping an asset from a cost point of view

BIt is the point beyond which it is not possible to find anyone who has the skills to operate the asset

CIt is when the asset's effective performance is below the standard required by the organisation

DIt is the point beyond which it is not possible to obtain any spare parts for the asset

Show Suggested Answer

Suggested Answer: A

by Lucille at Jun 20, 2026, 05:27 PM

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Julieta

12 hours ago

I feel like we covered something similar in class, and I think it was about the age of the asset, which could point to option A again.

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Anjelica

6 days ago

I remember discussing how an asset's performance impacts its value, which makes me lean towards option C, but I'm not entirely sure.

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Yvonne

11 days ago

I think the economic life of an asset relates to its cost-effectiveness, so maybe option A is correct?

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