Sovel by AI. Assumptions: Annual output (metric tons) 250,000 Output gain/Original output 7% Price/ton (pounds sterling) 541 Inflation rate (prices and costs) 0 Gross margin (ex. Deprec.) 12.5% Old gross margin 11.5% Tax rate 30% Investment outlay (mill.) 9 Energy savings/sales Yr. 1-5=1.25%, Yr. 6-10=0.8% , Yr. 11-15=0% Discount rate=10% Depreciable life (years) =15 Overhead Costs/Investment = 3.5% Salvage value = 0 Preliminary engineering costs = 0.5 Hint: 1) With new project, the output is increasing by 7%. The level of output remains the same throughout the life of the project. 2)The price of the output remains at 541 throughout the life of the project. 3)New gross margin=gross margin (ex. Depreciation) +energy savings/sales 4) Gross profit=gross margin * sale Question: What is the NPV