Chemical Engineering Plant Economics
The depreciation during the year 'n', in diminishing balance method of depreciation calculation, is calculated by multiplying a fixed percentage 'N' to the

Book value at the end of (n - 1)th year
Depreciation during the (n - 1)th year
Difference between initial cost and salvage value
Initial cost

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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

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

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Chemical Engineering Plant Economics
Pick out the correct statement.

Unamortised cost is the difference between the original cost of a property and all the depreciation charges made to dat
Sum-of-the-years-digits methods of depreciation calculation accounts for the interest on the investment
Scrap value is the net amount of money obtainable from the sale of used property over and above any charges involved in its removal & sale
Difference between income and expense is termed as gross revenue

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