Enterprise A has a project to invest in machinery and equipment with a purchase

price of 156 billion VND, a useful life of 5 years, and depreciation using the
straight-line method. At the end of the project, the fixed assets can be sold for
15.6 billion VND.
The projected revenue each year at 100% capacity is 156 billion VND. However, in
the first two years, the revenue was only 117 billion VND.
Variable costs account for 40% of the revenue, and fixed costs are 5 billion VND
per year (excluding depreciation). The discount rate is 12%/year.
The corporate income tax rate is 25%, with a tax exemption for the first 2 years.
1) Please determine the cash flow of the project.
2) Calculating payback period without discounting (PP) and discounted payback
period (DPP)
3) Calculating Net Prevent Value (NPV); Internal Rate of Return (IRR); and PI.
4) In your opinion, should you make an investment in the project?