Sovel by AI. "Sovel by AI. What is the NPV? After tax profit = 13.17 million. Discount rate = 0.07. T=15. Initial Investment = 11 million. " Diamond Chemical PLC - Merseyside Project Greenstock's DCF Analysis of the Merseyside Project Assumptions Annual Output 250000 Output Gain/Original Output 7% Price/Tone (pounds sterling) 541 Inflation rate (price and costs) 0% Gross Margin (ex Depreciation) 13% Old Gross Margin 12% Tax Rate 30% Investment Outlay (million) 9% Energy savings/sales 1% Discount Rate 10% Depreciable Life (years) 15 Overhead/Investment 3.5% Salvage value 0 WIP inventory/Cost of Goods 3% Months Downtime, Constructions 1.5 After-tax scrap proceeds 0 preliminary engineering costs 0.5 Year Now 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 1- Estimate of Incremental Gross Profit New output (tons) 267500 267500 267500 267500 267500 267500 267500 267500 267500 267500 267500 267500 267500 267500 267500 Lost output - Construction -33438 New Sales (millions) 126.63 144.72 144.72 144.72 144.72 144.72 144.72 144.72 144.72 144.72 144.72 144.72 144.72 144.72 144.72 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 17.41 19.9 19.9 19.9 19.9 19.8 19.18 19.18 19.18