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

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

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Chemical Engineering Plant Economics
Payback period

Is affected by the variation in earnings after the recovery of the investment
Is the length of time over which the earnings on a project equals the investment
All of these
And economic life of a project are the same

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