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Victoria Chemicals A

Discussion questions: (Victoria Chemicals A) 1. What change, if any, should Lucy Morris ask Frank Greystock to make in his discounted-cash-flow analysis? Why? What should Morris be prepared to say to the Transport Division, the director of Sales, and her assistant plant manager? Changes to the DCF No recommended changes. The assumption is that the customers will immediately buy 100% of all available product once production resumes. Could possibly have a ramp up period to get back to 100% production. Transport Division -

2. How attractive is the Merseyside project? By what criteria? 3. Should Morris continue to promote the project for funding? Discussion questions: (Victoria Chemicals B) 1. Why are the Merseyside and Rotterdam projects mutually exclusive? 4. How do the two projects compare on the basis of Victoria Chemicals (VC) investment criteria? What might account for the differences in the rankings? 5. What are the differences in the ways Elizabeth Eustace and Lucy Morris have advocated their respective projects? How might these differences in style affect the outcome of the decision? 6. Which project should James Fawn propose to the chief executive officer and board of directors?

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