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

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Chemical Engineering Plant Economics
In a manufacturing industry, break even point occurs, when the

Total annual rate of production equals the assigned value
Annual profit equals the expected value
Total annual product cost equals the total annual sales
Annual sales equals the fixed cost

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