Highest and Best Use – CapEx – Part II

CapEx Math 101 – Useful Life



Have you ever gotten a CapEx request that listed “exceeded useful life” as the primary reason for the asset’s replacement?

Highest and Best Use of owner’s capital is only achieved when the useful life of capital assets is MAXIMIZED.

  • What is “useful life”?
  • How should “useful life” be evaluated in capital asset replacement decisions?
  • How do you maximize “useful life”?

Anyone responsible for planning or managing capital expenditures should understand how useful life affects CapEx decision making.

Here is a link to a short article that will tell you everything you need to know about “useful life”:

Highest and Best Use – CapEx Part II – CapEx Math 101 – Useful Life


R-A Associates provides management consulting services focused on creating and sustaining the long term value of hospitality real estate assets.

  • Property Planning and Design,
  • Facilities Operations, and
  • CAPEX.

Contact us Here.

R-A Associates, LLC is associated with

, The Global Network of Independent Hospitality Professionals.

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