Introducing the Technical Obsolescence Standard for Fixed Assets in Economic Feasibility Studies and Project Evaluation

This study focused on the concept of extinction and its two conflicted terms. It was found that studies attribute extinction to two main reasons. The first is the deterioration of the fixed asset (machines, devices and equipment) while the second reason is the technical obsolescence that affects the fixed asset. The study found that there was a confusion and conflict between the two concepts. Where, extinction depends on the expected chronological lifespan of the fixed asset, which is different from the term technical obsolescence, since the obsolescence may be faster than the extinction of the fixed asset. However, although fixed asset still well working, efficient, and not passing its temporal life, may technically become obsolete, but it has not exhausted its temporal life. It was shown in this study that separating the two terms is of significant benefits for consultants and feasibility studies and project evaluation for achieving a better evaluation and pre-estimation