Chemical Engineering Plant Economics
'P' is the investment made on an equipment, 'S' is its salvage value and 'n is the life of the equipment in years. The depreciation for rath year by the sum-of years digit method will be

M/n x (P - S)
1 - (P/S)1/m
2(n - m + 1)/n(n + 1) x (P - S)
(P - S)/n

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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

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

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