How does Diamond evaluate its capital expenditures projects? Are the metrics appropriate? Information: In January 2001, Lucy Morris, plant manager of Merseyside Works, a plant owned by Diamond Chemicals PLC (Diamond), was presented with a capital project to renovate and rationalize the polypropylene production line at the MerseyUV2493 side plant. The project aimed to make up for deferred maintenance and increase production efficiency. Diamond was under pressure from investors to improve its financial performance due to the worldwide economic slowdown and the accumulation of the firm's common shares by Sir David Benjamin. Morris believed the time was ripe to obtain funding for a modernization program for Merseyside Works. Diamond, a leading producer of polypropylene, was under pressure from investors to improve its financial performance due to the worldwide economic slowdown and the accumulation of the firm's common shares by Sir David Benjamin. The Merseyside production process was old, semicontinuous, and higher in labor content than its competitors. Morris proposed an expenditure of GBP9 million on this program, which would require the entire polymerization line to be shut down for 45 days. Greystock believed the loss of customers would not be permanent, but the benefits would be lower energy requirement