EXERCISES PRACTICE

I. EXCEL EXERCISES

Ex 1. A family deposit $20 million annually at rate of interest of 0,9%/month (deposit at the
beginning of year), how much does the total money after 3 years?
Ex 2. Mr.Thanh deposits 20.000$ at an annual rate of 11%/year. At the end of the month he
deposits 2000$ monthly for 5 years. How much money does he have after 5 years?
Ex 3. An investment projects is invested VND 213.000 million. Annual revenue is VND 45000
million. Annual cost (excluding depreciation and interest) is VND 12.000 million. Salvage
value estimated VND 24.000 million. Expected operating life is 30 years. Project interest
rate is 12%/year? Using FV function to calculate net future value.
Ex 4. Ms.Hoa saves 25.000$ in her account. An array of interest rates is 2.1%, 2.2%, 2.3%, 2.4%
per year (in 4 years). How much money does she have after 4 years?
Ex 5. Calculate future value of a deposit amount of 15 billion VND after 4 years (An array of
interest rates is 9%, 10%, 12%,11%/year).
Ex 6. A person want to deposit an saving in 2 years in order to at the end of each month he can
withdraw $200 million. How much money does he have to deposit right now? Supposed
monthly interest rate is 0.8%/month.
Ex 7. How much money does you have to save in bank in 5 years in order to you can withdraw
VND 2 billion at the end of each year, supposed your account remains 500$, interest rates is
7%/year.
Ex 8. An investment projects is invested VND 213.000 million. Annual revenue is VND 45000
million. Annual cost (excluding depreciation and interest) is VND 12.000 million. Salvage
estimated VND 24.000 million. Expected operating life is 30 years. Project interest rate is
12%/year? Using PV function to calculate net present value.
Ex 9. An investment projects is invested VND 213.000 million. Annual revenue is VND 45000
millions. Annual cost (excluding depreciation and interest) is VND 12.000 millions. Salvage
estimated VND 24.000 million. Expected operating life is 30 years. Project interest rate is
12%/year? Using nper function to calculate payback period.
Ex 10. A person intends to save VND 5 billion in bank. At the beginning of each month, he
deposits additionally VND 100 million for the purpose of receiving totally VND 7 billion.
 Supposed that annual interest rate is 8%/year. How long does he have to deposit in order to
receive VND 7 billion?
Ex 11. An apartment for sale by installment payment in the following form: The value of the
apartment is 500 million VND, 30% pay in advance, the rest is paid in installments of VND
5,000,000 per month (including principal and interest) . Supposed the interest rate is 12%/
year. How many year does it take for payment?
Ex 12. A student borrow 15 million VND to buy a computer. He intended to pay 1.5 million at the
end of each month. Supposed interest rate is 1.1% / month. Request:
a. How long does it take for the student to pay off the loan?
b. If he want to pay within 12 months, how much will he have to pay each month?
Ex 13. A person borrow 80 million dong, intended to pay 20 million dong / year. How long does
this person take to pay off the debt. Supposed r = 12% / year. Request:
a. Creat a payback period spreadsheet
b. Use the NPER function to calculate the payback period
Ex 14. A person borrows 500 million VND. He must be paid 20 million VND at the end of month
within 30 months. How much interest rate for this amount money?
Ex 15. You borrow 120.000 million VND installment loans within 4 years, you have to pay both
principal and interest of 5 million VND at the beginning of month. How much interest rate
per month you have to pay?
Ex 16. How much money does Mr.Tung have to pay at the end of each month evenly? Supposed
interest rate is 11%/year. Amount of loan is 500.000$ in 10 years.
Ex 17. Mr.Binh expect to have VND 400 million after 10 year. Annual interest rate is 8%/year.
How much money does Mr.Binh have to deposit at the end of each months evenly?
Ex 18. Mr.Thành want to buy a motorbike (its cost is VND 30 million) with installment payment
withins 3 years. Interest rate of 12%/year. How much money does he have to pay evenly at
the end of each year?
Ex 19. An investment projects is invested VND 213.000 million. Annual revenue is VND 45000
million. Annual cost (excluding depreciation and interest) is VND 12.000 million. Salvage
estimated VND 24.000 million. Expected operating life is 30 years. Interest rate is
12%/year. Using pmt function to calculate net annual value (NAV)?
Ex 20. How much does the principal need paying in the second month. Supposed interest rate is
1%/month. The loan is VND 80 million within 3 months.
Ex 21. The loan is VND 200 million in term of 8 years. Interest rate is 10%/year. Interest pay at
the end of period. Request:
a. How much is the principal you have to pay in the second month of the second year?
b. How much is the principal you have to pay in the final year?
Ex 22. How much interest does you have to pay in the first year. Supposed interest rate is
10%/year and the loan is VND 100 million in term of 3 years.
Ex 23. You borrow VND 280 million in term of 3 years. Supposed interest rate is 10%/year. How
much interest does you have to pay in the second month?
Ex 24. The loan is $200,000 in term of 8 years. Interest rate is 10%/year. Interest pay at the end of
period. Request:
a. How much is the interest in the second months?
b. How much is the interest in the final year?
Ex 25. An investment project mobilize VND 2 billion at annual interest of 12%/year. The debt
(included principal and interest) is paid annually evenly in 10 years.
Request: Building loan repayment plan.
Ex 26. An investment project mobilize VND 2 billion. Interest rate is 12%/year. The principal is
paid evenly over 10 years, starting from the second year.
Request: Building loan repayment plan.
Ex 27. An investment project invested VND 160 billion. First year revenue: 35 VND billion; 2nd
year: 38 VND billion; from 3rd year reached 40 VND billion until at the end. Annual cost
(excluding depreciation and interest) by 55% estimated annual revenue. The cost of
periodical maintenance after every 5 years is 10 billion. Salvage value is estimated 10 VND
billion. Expected operating life of 30 years. r = 12%. Request:
a. Building net present value statement
b. Use NPV function to calculate net present value .
c. Use IRR function to calculate internal rate of return .
Ex 28. Fixed asset cost of project is VND 3500 million. Expected operating time is 10 years.
Salvage value is estimated VND 500 million. Calculate depreciation of asset by:
a. Using straight line depreciation method
b. Using declining balance depreciation method
c. Using double declining balance depreciation method
d. Using variable declining balance depreciation method
e. Using sum of years’ digits depreciation method
Ex 29. Fixed cost of an investment plan is VND 3.000 million; the variable cost per unit is VND
15.000, the unit price is VND 40.000. Request:
a. Building output, cost and profit analyzing statement.
b. Use the goal seek function to calculate the break-even of output & revenue.
Ex 30. An investment project is invested VND 213.000 million. Annual revenue is VND 45000
million. Annual cost (excluding depreciation and interest) is VND 12.000 million. Salvage is
estimated VND 24.000 million. Expected operating life is 30 years. Interest rate is 12%/year.
Request:

a. Seek the maximum % increase in annual expenses?

 b. Seek the maximum % decrease in annual revenue?
c. Seek the maximum % increase in investement capital
In order to maintain effective project
Ex 31. An investment project invested VND 95 billion. First year revenue: VND 22 billion; 2nd
year: VND 28 billion; from 3rd year reached VND 32 billion/year until at the end of project.
Annual costs (excluding depreciation and interest) by 55% estimated annual revenue. Cost of
periodical maintenance after every five years is VND 5 billion. Salvage value is estimated
VND 10 billion. Expected operating time is 20 years. Request:
a. Calculate NPV, IRR, r =12%.
b. Seek the maximum % decrease in annual revenue in order to maintain effective
project?
c. Seek the maximum % increase in annual expenses in order to maintain effective
project?
Ex 32. A company mobilize VND 1000 million to buy a technological line. Interest rate is
12%/year. Annual revenue of this technological line is VND 480 million. It’s annual
expenses is VND 250 million. It’s useful life time is 20 years. It’s salvage is VND 20 million
Request :
a. Calculate NPV, IRR, T of the project
b. Draw NPV, T chart of the project
Ex 33. There are 2 investment project:

No Items Unit Project A Project B

1. Investment VND million 12.000 16.000
2. Annual Cost ″ 3.500 4.500
3. Annual Revenue ″ 6.500 8.500
4. Salvage values ″ 1.100 1.500
5. Operating time ″ 10 20
r = 12%.
Request:
a. Choose the best investment project by using NPV
b. Choose the best investment project by using NAV
c. Choose the best investment project by using IRR
Ex 34. There are 3 investment project:

No Items Unit Project A Project B Phương án

C
1 Investment VND million 12.000 16.000 36.000
2 Annual Cost ″ 3.500 4.500 5.500
3 Annual Revenue ″ 6.500 8.500 12.500
4 Salvage values ″ 1.100 1.500 2.500
5 Operating time ″ 10 20 30
r = 11%.
 Request:
a. Choose the best investment project by using NPV
b. Choose the best investment project by using NAV
c. Choose the best investment project by using IRR
Ex 35. A hotel investment project invested VND 90 billion. First year revenue: 35 VND billion;
2nd year revenue: 38 VND billion; from 3rd year revenue reached 40 VND billion. Annual
cost (excluding depreciation and interest) is by 55% estimated annual revenue. Cost of
periodical maintenance after every five years is 10 VND billion. Salvage is estimated 10
VND billion. Expected operating time of 10 years. r = 12%
Request:
a. Analyze the sensitivity of IRR when annual cost increases/ decreases about ± 30%
(one- variable data table).
b. Analyze the sensitivity of IRR when annual revenue increases/ decreases about ±
30% (one-variable data table).
c. Analyze the sensitivity of IRR when both annual revenue and annual cost
decreases/increases about ± 30% (two-variable data table)
d. Analyze the sensitivity of IRR when investment capital increases/ decreases about
±30% (one-variable data table)
Ex 36. A hotel investment project invested VND 90 billion. First year revenue: 35 VND billion;
2nd year revenue: 38 VND billion; from 3rd year revenue reached 40 VND billion. Annual
cost (excluding depreciation and interest) is by 55% estimated annual revenue. Cost of
periodical maintenance after every five years is 10 VND billion. Salvage value is estimated
10 VND billion. Expected operating time of 10 years. r = 12%
Request:
a. Analyze the sensitivity of NPV when annual cost increases/ decreases about ± 30%
(one- variable data table).
b. Analyze the sensitivity of NPV when annual revenue increases/ decreases about ±
30% (one-variable data table).
c. Analyze the sensitivity of NPV when both annual revenue and annual cost
decreases/increases about ± 30% (two-variable data table)
d. Analyze the sensitivity of NPV when investment capital increases/ decreases about
±30% (one-variable data table)
Ex 37. Investment of an project is VND 450 billion (includes owner’s capital is VND 250 billion;
loan capital is VND 200 billion with its interest 10%/year). The principal is repayable in 5
years. Debt is repaid since the third years. Interest is paid annually, includes:
- Fixed capital is VND 400 billion, includeds: Fixed asset costs (factory cost,
machinery cost) is VND 376 billions và other cost (project management cost;
consultant cost, other cost) is VND 24 billion.
- Working capital is VND 50 billion.
- Annual revenue is expected (not includes VAT): Year 1: VND 270 billion. Year 2:
VND 280 billion. Year 3, expected annual revenue is 290 billion dong. Annual
 operating cost (not includes depreciation, interest) are estimated at 60% of annual
revenue.

At the end of year 2 and year 3, additional working capital is VND 1 billion/year.
The fixed asset salvage value is VND 110 billion. Fixed costs are depreciated evenly over
10 years. Project management cost and other cost are depreciated over the first five years.
The income tax rate is 20%. Operating time of project is 10 years. Owner’s capital interest
rate is 12%/ year.

Request:

a. Determine the cost of capital of project (in case the cost of loan capital is pre-tax
loan capital)
b. Create loan repayment plan?
c. Create cash flow statement of project by direct method?
d. Calculate financial efficiency indicators of project (NPV, T, IRR)?
Ex 38. Investment of an project is VND 370 billion (includes owner’s capital is VND 210 billion;
loan capital is VND 160 billion with its interest 11%/year). The principal is repayable in 8
years. Debt is repaid since the second years. Interest is paid annually, includes:
- Fixed capital is VND 330 billion, includeds: Fixed asset costs (factory cost,
machinery cost) is VND 310 billions và other cost (project management cost;
consultant cost, other cost) is VND 20 billion.
- Working capital is VND 40 billion.
- Annual revenue is expected (not includes VAT): Year 1: VND 210 billion. Year 2:
VND 220 billion. Year 3, expected annual revenue is 240 billion dong. Annual
operating cost (not includes depreciation, interest) are estimated at 50% of annual
revenue.

At the end of year 1 and year 2, additional working capital is VND 1.2 billion per
year. Every four years, the cost of repairing periodically is VND 0.8 billion. The fixed asset
liquidation value at the end of the project life is VND 52 billion. Fixed costs are depreciated
evenly over 10 years. Project management cost and other cost are depreciated over the first
five years. The income tax rate is 20%. Operating time of project is 10 years. Owner’s
capital interest rate is 13%/ year.

Request:

1. Determine the cost of capital of project (in case the cost of loan capital is after-
tax loan capital)
2. Create loan repayment plan?
3. Create cash flow statement of project by indirect method?
4. Calculate financial efficiency indicators of project (NPV, T, IRR)?
Ex 39. Thang Loi Joint Stock Company plans to invest in building a flour processing factory with
the following plans:
A. Investment project infomation:

Factory: investment construction cost is VND 4500 million. Factory depreciation is 10

years.

Equipment: equipment line cost is 550,000 USD, of which 60% is loan. The loan (included
principal and interest) is paid annually evenly at the end of each year for 3 years. Interest
rate is 12% / year. Import tax of 10%. Equipment is depreciated evenly in 5 years.
Equipment salvage value is 70 million VND. The installation cost is VND 620 million.
Equipment capacity is 15,000 tons/year. Exchange rate: 14,500 VND/USD.

B. Operating plan:

1. Expenses:

Variable cost (VAT included) included raw material: VND 3.8 million/ ton; subsidiary
Material: VND 2.7 million/ton; fuel: VND 0.4 million/ ton ; packing: VND 0.5 million/ton;
labor: VND 0.5 million/ ton; business expenses: 0.3 million dong. Management expenses:
3.2 billion dong. Working capital average is about 22% of the total variable cost. Interest
rate of 12% / year

2. Expected revenue:

Price VND 720/pack. Weight of 1 pack is 75g. Expected consumption capacity: year 1:
70%, year 2: 80%, from year 3 to reach 90%. Salvage value during production are 3% of
the capacity. Unit price is 3 million / ton (including VAT). VAT 10%. Income tax is 25%.
Project operation time is 5 years.

Request:

1. Building annual estimated revenue statement of the project

2. Building annual estimated expenses statement
3. Building loan payment plan statement
4. Building annual net profit statement
5. Building the project's cash flow statement
6. Calculate NPV, IRR, T.

II. PROJECT EXERCISES

Ex 1: Data of project with the following:

Task A B C D E
Predecessor task - After job A Start 1 day End 3 days Start 1 day
end after job B after job C earlier than
end end the end of
 job D
Duration (day) 5 8 3 4 6
Designer (labor) 3 4 6 7 5
Sand (m3) 10m3 15m3 20m3 8m3 25m3

Starting date of project is 21/11/20XX. Working week day from Monday to Saturday,
8h/day, Working time: morning from 7:00 am - 11:00 am. Afternoon from 13:00 to 17:00.
Maximum designer is 8. Standard rate cost is VND 20.000/ hour. Over rate cost is VND
40.000/ hour. The unit price of building sand is 500,000 VND / m3.

Request:
1. Determine project start and finish date?
2. Determine critical task and critical path length of project?
3. Determine total slack and free slack of each task?
4. Determine work and cost for each task?
5. Determine cummulative work and cumulative cost for each task at the date of 25/11/20XX?
6. Determine cummulative work and cumulative cost for each resource to date of
25/11/20XX?
7. Determine cost of project?
8. Determine maximum resource capacity overload? Determine resource overload for each
day? Determine project finish day after balancing resource?

Note: “XX” means current year

Ex 2:

Data of project with the following:

Task A B C D E
Predecessor task - A A,B C B,C

Duration (day) 5 8 3 4 6
Designer (labor) 3 4 6 4 5
Building sand 10m3 15m3 20m3 8m3 25m3
(m3)

Starting date of project is 25/11/20XX. Working week day from Monday to Saturday,
8h/day, Working time: morning from 7:30 am - 11:30 am. Afternoon from 13:30 to 17:30.
Special non-wroking day is 01/12/20XX. The project has 7 designers. Standard rate cost is
VND 300.000/day. Over rate cost is VND 55.000/ hour. The unit price of building sand is
240,000 VND/m3

Request:
 1. Determine project start and finish date?
2. Determine critical task and critical path length of project?
3. Determine total slack and free slack of each task?
4. Determine work and cost for each task?
5. Determine cummulative work and cumulative cost for each task at the date of 03/12/20XX?
6. Determine cummulative work and cumulative cost for each resource to date of
03/12/20XX?
7. Determine cost of project?
8. Determine maximum resource capacity overload? Determine resource overload for each
day? Determine project finish day after balancing resource?

Note: “XX” means current year

Ex 3:

An enterprise is implementing a project with the following tasks:

Task A B C D
Predecessor - Start when task Start early 1 day Start when task
A finish when task B C and task B
finish finish
Duration 15 10 12 14
Labors 7 9 8 4
Resources 10 tons of 5 tons of One crane; 3 15 tons of
cement; 1 crane; cement; 2 tons tons of gravel cement; 2 tons
3 tons of steel of sand of steel
Maximum labor is 11 labor; Labor cost: VND 40.000/h. Unit price of cement: VND 150.000/ tons.
Price of crane: VND 100.000/h. Unit price of steel: VND 1.300.000/tons. Unit price of sand: VND
180.000/tons.
Project starts at 20/11/20XX. Working days from Monday to Saturday, morning from 7h-11h;
afternoon from 13h-17h. Special non-wroking day is 25/11/20XX.
Request:
1. Determine project start and finish date?
2. Determine critical task and critical path length of project?
3. Determine total slack and free slack of each task?
4. Determine work and cost for each task?
5. Determine cummulative work and cumulative cost for each task at the date of 25/11/20XX?
 6. Determine cummulative work and cumulative cost for each resource to date of
25/11/20XX?
7. Determine cost of project?
8. Determine maximum resource capacity overload? Determine resource overload for each
day? Determine project finish day after balancing resource?

Note: “XX” means current year

Ex 4: An investor plans to launch a baking project to supply to the market. Time to start the project
from 15/11/20XX. Working time: morning from 7:00 am - 11:00 am; Afternoon from 13:00 to
17:00. Working day from Monday to Saturday.

No Task Time (hour) Predecessor task

1
Prepare materials
1.1 - Brewing up dough 18
1.2 - Cookware 0.5
1.3 - Cooking stove 0.5
2 Making cake
2.1 - Almond cake 1 1 hour before dough brewing
end
2.2 - Green bean cake 1 1 hour before dough brewing
end
3 Bake cake
3.1 - Almond cake batch 1 1 After making almond cake &
green bean cake
3.2 - Almond cake batch 2 1 After bake almond cake batch 1
3.3 - Green bean cake batch 1 1.5 After bake almond cake batch 2
3.4 - Green bean cake batch 2 1.5 After bake green bean cake
batch 1
4. Inspection 1 After bake almond cake batch 2
& bake green bean cake batch 2
5 Delivery
5.1. - Packed 1 After 2 hours inspection
5.2. - Delivery 1 After packed
6. Cash 1 ngày After 1 day delivery

The costs of the project are as following:

1. Labor: Baker: 200,000 VND / day; overtime is 50,000 VND / hr. Packer: 150,000 VND /
day. Delivery and cash staff: 100,000 VND / day.
2. Raw materials: Wheat flour: 10,000 VND / kg; Cooking oil: 50,000 VND / liter; Green been:
44.000 VND/kg; Almond: 55,000 VND/kg; plastic bag: 300 VND/bag; electricity: 2,200
VND/kwh; gas: 33,000 VND/kg.
 3. Depreciation of equipment: oven: 20,000 VND/time ; baking tray: 10,000 VND/time; flour
mixing pan: 5000 VND/ time. Gas shell: 20,000 VND/time.
Note: baker maximum 2 people; packer is 2 people; Delivery & cash staff: 2 people.
Resources allocated for the task are as follows:
1. Kneading flour: flour (300kg), baker (2 people); flour mixing pan (1 pc)
2. Material preparation: 1 baker
3. Making almond cakes: baker (2 people); almonds (50kg); flour (200kg); electricity (0.5kw)
4. Making green been cake: baker (1 person); flour (100kg); green been (150 k); electricity
(0.5kw)
5. Bake cake: baking trays is used 3 times; cooking oil (5 liters); baker (1 person); oven is used
3 times; electricity (10kw).
6. Inspection: 2 bakers
7. Packing: packer (2 people); plastic bag (2000 pcs)
8. Delivery: 2 delivery staff
9. Cash collection: 2 delivery staff
Request:
1. Determine project start and finish date?
2. Determine critical task and critical path length of project?
3. Determine total slack and free slack of each task?
4. Determine work and cost for each task?
5. Determine cummulative work and cumulative cost for each task at the date of 25/11/20XX?
6. Determine cummulative work and cumulative cost for each resource to date of
25/11/20XX?
7. Determine cost of project?
8. Determine maximum resource capacity overload? Determine resource overload for each
day? Determine project finish day after balancing resource?

Note: “XX” means current year