Chemical Engineering Plant Economics
Depreciation

All of these
Does figure in the calculation of income tax liability on cash flows from an investment
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

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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

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

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