Chemical Engineering Plant Economics
The payback method for the measurement of return on investment

Underemphasises liquidity
Gives a correct picture of profitability
Does not measure the discounted rate of return
Takes into account the cash inflows after the recovery of investments

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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

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

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