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

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

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

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