What is considered the point in an asset’s life cycle where the total ownership costs are at the lowest?

The economic life of an asset is the period during which it remains cost-effective to operate and

maintain, minimizing total ownership costs.

Economic life (D) is determined by evaluating operating expenses, maintenance costs, depreciation,

and efficiency. At this stage, the asset provides maximum value before its costs exceed its benefits.

Ownership life (A) refers to the entire period of possession, which may extend beyond its optimal

cost-effective period.

Useful life (B) is the estimated time an asset can be functionally used, but this does not always align

with cost efficiency.

End of life (C) marks when an asset is no longer usable, often requiring costly disposal or

replacement.

Reference: Strategic Facilities Management – Whole Life Costing​