Chemical Engineering Plant Economics
Which of the following is not a component of depreciation cost?

Repairs and maintenance cost
Loss due to obsolescence of the equipment
Loss due to accident/breakdown in the machinery
Loss due to decrease in the demand of product

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Chemical Engineering Plant Economics
Payback period

Is the length of time over which the earnings on a project equals the investment
Is affected by the variation in earnings after the recovery of the investment
All of these
And economic life of a project are the same

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

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