What term describes the estimated time period that an investment will provide positive returns?

The term that describes the estimated time period that an investment will provide positive returns is known as "Economic Life." This concept refers to the duration over which an asset is expected to generate positive net cash flows, making it a crucial factor in investment analysis and financial planning. Understanding the economic life of an investment helps investors make informed decisions, as it indicates how long they can anticipate returns before the asset may lose value or cease to generate income.

In this context, economic life encompasses not just the physical wear and tear of an asset but also considers factors such as market dynamics and technological advancements that could affect an investment's profitability over time. Having a clear understanding of this period aids in assessing the potential risks and rewards associated with the investment, leading to more strategic decision-making.