Chemical Engineering Plant Economics
Depreciation

Costs (on annual basis) are constant when the straight line method is used for its determination
Is the unavoidable loss in the value of the plant, equipment and materials with lapse in time
All of these
Does figure in the calculation of income tax liability on cash flows from an investment

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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

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

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Chemical Engineering Plant Economics
Payback period

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

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