Identify the incorrect statement from the following options:

Explanation

Option A is incorrect because the annual depreciation rate for machinery and equipment in a chemical process plant is approximately 10% of the fixed capital investment. Option B is correct as buildings depreciate at about 3% of their initial cost each year. Option C is accurate since insurance costs tend to be around 1% of fixed capital annually. Option D is also correct because research and development costs often account for roughly 15% of net sales revenue in the chemical industry.