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
Pumps and compressor
Fabricated equipment and machinery
Electrical equipments and material

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Chemical Engineering Plant Economics
Depreciation

Is the unavoidable loss in the value of the plant, equipment and materials with lapse in time
All of these
Does figure in the calculation of income tax liability on cash flows from an investment
Costs (on annual basis) are constant when the straight line method is used for its determination

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