Midterm exam:

1. Bach Ma National Park is located in Phu Loc district, Thua Thien Hue province, 40km
from Hue city, 65km from Da Nang. Bach Ma National Park is part of the North Truong Son
with peaks over 1,000m running horizontally from West to East. Bach Ma National Forest
has a total area of nearly 37,500 hectares, which is a large primeval forest, with 2373
species of plants and 1715 diverse species of animals, including many rare species listed in
the Red Book of Vietnam.

The American company Inros Lackner introduced the plan for the construction of Bach Ma
eco- tourism area. The estimated scale is about 387.8 ha with 2 functional areas. Zone A is
the infrastructure area of about 97.8 ha (at the foot of the mountain, in Khe Su area, Loc Tri
commune, Phu Loc district) and zone B is Bach Ma eco-tourism area, which is about 290
hectares. The eco- tourism area includes a tourist village at the mountain peak, a heritage
tourism village, a central village, a spiritual tourist area, a supporting area, a waterfall valley
tourist village and a landscape area. The consultant Poma Group has also proposed a plan
of developing 2 cable car routes for Bach Ma. The cable route No. 1 (from the foot of the
mountain, Khe Su area to the top of Bach Ma), which is 4,027 m in lengthincluding 24
columns, with a maximum capacity of 1,750 guests. The cable route No2 has a length of
1,603m, from the top of the mountain to the area of Ngu Ho waterfall. The project will have
the capacity to serve 500,000 passengers/year in the period 2020- 2030 and 1 million
passengers/year after 2030.

Set 1: Identify the financial revenue and cost of the project (for FA) Identify the stakeholders
of the project

The financial revenue and cost of the Bach Ma eco-tourism area project can be summarized as
follows:

Costs:

● The production line (fixed asset) costs VND 900 million to purchase and set up initially
(year 0).
● The working capital is 300 million VND in year 0.
● The investor will borrow VND 600 million from the bank with the annual interest rate of
8% and will repay with the annuity method over 5 years (from year 1).
● At the end of year 2, VND180 million will be invested to upgrade the production line
(upgrading time is insignificant) and working capital must be increased by VND 80
million.
● Estimated annual production and business costs are as follows: Total fixed business
costs (not including depreciation) are VND 100 million. Variable costs equal to 50% of
annual revenue.

Revenue:

● It is expected that the first and second year of the project will bring the annual revenue of
VND 800 million.
● In the year 3, 4 and 5, the revenue is VND 1,000 million/year.

The stakeholders of the Bach Ma eco-tourism area project include213:

 ● Local communities living around the Bach Ma National Park, Vietnam2.
● The American company Inros Lackner which introduced the plan for the construction of
Bach Ma eco- tourism area1.
● The consultant Poma Group which proposed a plan of developing 2 cable car routes for
Bach Ma1.
● WWF-Viet Nam, USAID Biodiversity Conservation program funded by USAID3.
● Visitors of the eco-tourism area.
● Government agencies responsible for approving and overseeing the project.
● Investors and financial institutions involved in funding the project.
● Contractors and suppliers providing materials and services for the project.
● Employees working on the project.

Set 2: Identify the costs and benefits of the above project for CBA, including economic,
environmental costs and benefits.

The Cost-Benefit Analysis (CBA) of the Bach Ma eco-tourism area project can be summarized as
follows:

Economic Costs and Benefits:

● Costs: The production line (fixed asset) costs VND 900 million to purchase and set up
initially (year 0). The working capital is 300 million VND in year 0. The investor will borrow
VND 600 million from the bank with the annual interest rate of 8% and will repay with the
annuity method over 5 years (from year 1). At the end of year 2, VND180 million will be
invested to upgrade the production line (upgrading time is insignificant) and working
capital must be increased by VND 80 million1.
● Benefits: It is expected that the first and second year of the project will bring the annual
revenue of VND 800 million. In the year 3, 4 and 5, the revenue is VND 1,000
million/year1.

Environmental Costs and Benefits:

● Costs: The environmental costs of the project could include potential disturbances such
as construction, noise, litter, pollution, and more, that can disrupt local wildlife and
damage their habitats.
● Benefits: The environmental benefits of the project could include helping fund wildlife
conservation efforts and combatting climate change2. The project could also help
protect biodiversity and minimize climate change by discouraging deforestation.
It’s important to note that these are estimated costs and benefits. The actual costs and
benefits could vary depending on a variety of factors, including changes in market
conditions, unforeseen environmental impacts, and changes in government policies or
regulations.
2. Company ABC is considering a project of installing a production line for product A. The
project is expected to last 5 years. The cashflow is as follows:

1. The production line (fixed asset) costs VND 900 million to purchase and set up initially
(year 0). The working capital is 300 million VND in year 0. The investor borrow will VND 600
million from the bank with the annual interest rate of 8% and will repay with the annuity
method over 5 years (from year 1). The equity has an annual expected rate of return of 10%.

2. At the end of year 2, VND180 million will be invested to upgrade the production line
(upgrading time is insignificant) and working capital must be increased by VND 80 million.

3. It is expected that the first and second year of the project will bring the annual revenue of
VND 800 million. In the year 3, 4 and 5, the revenue is VND 1,000 million/year. 4. Estimated
annual production and business costs are as follows:

- Total fixed business costs (not including depreciation) are VND 100 million.

- Variable costs equal to 50% of annual revenue.

5. The fixed asset will be depreciated with straight line method in 5 years. The additional
investment to upgrade production lines is expected to be depreciated in 3 years with straight
line method too.

6. Working capital is expected to be recovered at one time, in the last year of the project. 7.
The corporate income tax rate is 25%. Calculate the net present value and indicate whether
the company ABC should implement the project
Bài shrimp farming
Đề cuối kỳ khóa 61:

Part A.
a. *False*. The exportable goods are those whose FOB price is lower than the domestic
price plus the export tax. If the FOB price is higher than the domestic price plus the export
tax, then the goods are not exportable .
b. *True*. The internal rate of return (IRR) is a financial metric that measures the profitability
of an investment project. If the IRR is greater than the project's discount rate, then the
project is considered profitable and should be conducted from an investor's point of view .

c. *True*. In financial analysis of investment projects, the cost items included in the analysis
include investment costs, operating costs, externalities costs, and taxes .

Part B.
The project to build a shopping, entertainment and golf course complex at Nature Park X
needs to conduct *both* financial and economic analysis. Financial analysis is used to
evaluate the financial feasibility of the project, while economic analysis is used to evaluate
the economic feasibility of the project.

Some of the financial costs of the project include the cost of purchasing the land, the cost of
constructing the shopping, entertainment, and golf course complex, and the cost of
maintaining the complex. Some of the financial benefits of the project include the revenue
generated from the sale of goods and services, the revenue generated from the golf course,
and the revenue generated from the entertainment facilities.

Some of the economic costs of the project include the opportunity cost of using the land for
the shopping, entertainment, and golf course complex instead of other uses, the cost of any
negative externalities associated with the project, and the cost of any subsidies or tax
incentives provided to the project. Some of the economic benefits of the project include the
creation of jobs, the increase in tourism, and the increase in property values in the
surrounding area.

Part C
Part D
b) ENPV tính tương tự

Ra cả ENPV và FNPV đều nhỏ hơn 0

Kết luận dự án k khả thi nha
FNPV bằng 0 thì unprofitable và ENPV =0 thì sao
thì k có tác động đến economic ấy và social và environment
còn khả thi thì phải 1 trong 2 > 0
vidu nếu FNPV > 0 và ENPV < 0
thì mình kết luận dự án mang lại lợi ích cho nhà đầu tư
tuy nhiên gây ảnh hưởng xấu đến economic
giải pháp
ví dụ như để cho cơ sở sản xuất giấy
thấy Q3 hỏi về policies
thì nó sẽ ảnh hưởng môi trường ở việc là chặt cây, làm hư đất đai...
thì policies là trồng cây phủ xanh đất trống đồi trọc
À có trường hợp là FNPV < 0 nhưng ENPV > 0
thì trường hợp này hay xảy ra với các dự án phi lợi nhuận, nó có mục tiêu là xây dựng
xã hội
Kiểu như xây trường học cho trẻ em nghèo, hoặc xây nhà ở cho các gia đình bị bão lũ
chẳng hạn
thì nếu tính ra trường hợp như vật thì kết luận dự án có thể là dự án phi lợi nhuận
hoặc dự án do nhà nước thực hiện
vì vậy họ cần đưa ra các giải pháp hạn chế tác động xấu lên môi trường xã hội
ê cái phần m chú ý một số dự án đem về environment cost thì cái đấy cộng vào net cash
flow à
Trong đề có thể sẽ cho environment cost hoặc environment benefit
Nếu người ta ghi là cost thì Net Benefit = Net Cash Flow - Environment Cost
Còn ghi là Benefit thì Net Benefit = Net Cash Flow + Environment Benefit