What is the NPV, IRR, Payback Period and growth in EPS? 

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Victoria Chemicals PLC (A): The Merseyside Project Greystock's DCF Analysis of the Merseyside Project (financial values in millions of GBP) Assumptions Annual Output (metric tons) 250,000 Discount Rate 10.09 Output Gain/ Original Output 7.0% Tax Rate 30% Price/Ton (pounds sterling) 675 Investment Outlay (mill) 12.0 Inflation Rate (prices and costs) 0.0% Depreciable Life (years) 15/ Gross Margin (ex. Deprec.) 12.50% Salvage Value 0 Old Gross Margin 11.5% WIP Inventory/Cost of Goods 3.0% Energy Savings/Sales Yr. 1-5 1.25% Months Downtime, Construction 1.5 Yr. 6-10 0.75% Preliminary Engineering Costs 0.5 Yr. 11-15 0.0% Overhead/Investment 3.5% 9 10 11 12 13 14 Year Now 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1. Estimate of Incremental Gross Profit New Output (tons 267,500 267,500 267,500 267,500 267,500 267,500 267,500 267,500 267,500 267,500 267,500 267,500 267,500 267,500 267,500 Lost Output-Construction (33,438) New Sales (millions 157.99 180.56 180.56 180.56 180.56 180.56 180.56 180.56 180.56 180.56 180.56 180.56 180.56 180.56 180.56 New Gross Margin 13.8% 13.8% 13.8% 13.8% 13.8% 13.3% 13.3% 13.3% 13.3% 13.3% 12.5% 12.5% 12.5% 12.5% 12.5% New Gross Profit 21.72 24.83 24.83 24.83 24.83 23.92 23.92 23.92 23.92 23.92 22.57 22.57 22.57 22.57 22.57 Old Output 250,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000 Old Sales 168.75 168.75 168.75 168.75 168.75 168.75 168.75 168.75 168.75 168.75 168.75 168.75 168.75 168.75 168.75 Old Gross Profit 19.41 19.41 19.41 19.41 19.41 19.41 19.41 19.41 19.41 19.41 19.41 19.41 19.41 19.41 19.41 Incremental Gross Profit 2.32 5.42 5.42 5.42 5.42 4.52 4.52 4.52 4.52 4.52 3.16 3.16 3.16 3.16 3.16 2. Estimate of Incremental WIP Inventory New WIP Inventory 4.09 4.67 4.67 4.67 4.67 4.70 4.70 4.70 4.70 4.70 4.74 4.74 4.74 4.74 4.74 Old WIP Inventory 4.48 4.48 4.48 4.48 4.48 4.48 4.48 4.48 4.48 4.48 4.48 4.48 4.48 4.48 4.48 Incremental WIP Inventory 0.39 0.19 0 19 0.19 0.19 0.22 0.22 0.22 0.27 0.22 0.26 0.26 0.26 0.26 0.26 3. Estimate of Incremental Depreciation New Depreciation 1.60 1.39 1.20 1.04 0.90 0.78 0.68 0.59 0.55 0.55 0.55 0.55 0.55 0.55 0.55 4. Overhead 0.42 0.42 0.42 0.42 0.42 042 0.42 0.42 0.42 0.42 0.42 0 42 042 0.42 0.42 5. Prelim Engineering Costs 0.50 Pretax Incremental Profit .0.20 3.61 3.80 3.96 4.10 3.32 3.42 3.51 3.55 3.55 2.20 2.20 2.20 2.20 2.20 6. Cash Flow Adjustments Less Capital Expenditures -12.00 Add Back Depreciation 1.60 1.39 1.20 1.04 0.90 0.78 0.68 0.59 0.55 0.53 0.55 0.55 0.55 0.55 0.55 Less Added WIP Inventory 0.39 -0.58 0.00 0.00 0.00 -0.03 0.00 0.00 0.00 0.00 -0.04 0.00 0.00 0.00 0.26 7. Free Cash Flow -12.0 .85 3.33 3.86 3.81 3.77 3.08 8.07 3.05 3.03 3.03 2.04 2.08 2.08 2.08 2.34 NPV = 10.57 IRR = 24.3% Source: Created by author.