Chemical Engineering Plant Economics
Chemical engineering plant cost index is used for finding the present cost of a particular chemical plant, if the cost of similar plant at some time in the past is known. The present cost of the plant = original cost x (index value/(index value at original cost was obtained)The most major component of this cost index is

Fabricated equipment and machinery
Process instruments and control
Electrical equipments and material
Pumps and compressor

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Chemical Engineering Plant Economics
In a manufacturing industry, break even point occurs, when the

Total annual product cost equals the total annual sales
Annual sales equals the fixed cost
Annual profit equals the expected value
Total annual rate of production equals the assigned value

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Chemical Engineering Plant Economics
In declining balance method of depreciation calculation, the

Annual depreciation is the fixed percentage of the property value at the beginning of the particular year
Value of the asset decreases linearly with time
Annual cost of depreciation is same every year
None of these

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