PV 600

NPER 10
RATE 15%
FV ₫2,427.33

Q2
PMT 10000
RATE 8%
NPER 10
FV ₫144,865.62

Q4
PMT 1000
NPER 4
RATE 14%
PV ₫2,913.71

Q5. Screw-Em-Good Corp. has just announced a

revolutionary security: If you pay SEG
$1,000
now, you will get back $150 at the end of each of the
next 15 years. What is the IRR of this investment?
0 -1.000
1 150
2 150
3 150
4 150
5 150
6 150
7 150
8 150
9 150
10 150
11 150
12 150
13 150
14 150
15 150
NPV 999.000
RATE 12%

YEAR CASH FLOW

0 -900
1 120
2 120
3 120
4 120
5 120
6 120
7 120
8 120
9 120
10 120

0 -1.000
1 100
2 200
3 300
4 400
5 500
6 600
7 700
8 800
9 900
10 1000

Ordinary Annutity
Year cashflow
1 200
2 200
 3 200
4 200
5 200
6%

0 200
1 200
2 200
3 200
4 200
5 200
6%

1 200
2 200
3 200
4 200
5 200
6%

0 200
1 200
2 200
3 200
4 200
6%

Q1
PV 1000
NPER 15
RATE 9%
FV (₫3,642.48)
Q2
PV 10
NPER 50
RATE 20%
FV (₫91,004.38)

Q3
PV 100
NPER 3
RATE 0%
FV (₫100.00)

Q4
FV 10000
NPER 7
RATE 8%
PV (₫5,834.90)

Q5
FV 4.5
NPER 8
PV 3.0
RATE 5%

Q6
PV 5000
FV 10000
RATE 12%
NPER 6.1162553742

Q7
YEAR CASHFLOW
1 500
2 200
3 800
12%
PV ( TÍNH NPV) ₫1,175.29

Q8
YEAR CASHFLOW
 1 10
2 -20
3 10
4 150
8.5%
PV (NPV) ₫108.29

Q9
YEAR FV
1 50000
2 50000
3 50000
4 50000
5 50000
6 50000
7 50000
8 50000
9 50000
10 50000
11 50000
12 50000
13 50000
14 50000
15 50000
16 50000
17 50000
18 50000
19 50000
20 50000
10%
PV (₫425,678.19)

Q10
NPER 5
RATE 9.50%
PV 10000
PMT ₫2,604.36

Q11
NPER 15
PMT 8000
RATE 11%
PV (₫63,854.92)

Q12
RATE 11%
NPER 10
FV 60000
PMT (₫3,588.09)

Q13
RATE 9%
YEAR 10
PMT 4000
PV (₫25,670.63)
DISCOUNT PV OF THE ANNUITY BACK 4 YEARS
NPER 4
PMT 0
RATE 9%
FV (₫25,670.63)
PV ₫18,185.72

Q14
PMT 1000
NPER 4
RATE 12%
FV ₫5,352.85

Q15
PMT 150000
RATE 20%
NPER

Q16
PV 5000
RATE 12%
NPER 1

Q19
PV 10000
RATE 10%
NPER 10
PMT 1627.45

Loan table
Beginning amount Principal
10000 1000
9000 1000
8000 1000
7000 1000
6000 1000
5000 1000
4000 1000
3000 1000
2000 1000
1000 1000

Beginning amount Principal

10000 627
9373 690
8682 759
7923 835
7088 919
6169 1011
5159 1112
4047 1223
2825 1345
1480 1480

Loan amount 1000000

Rate 10%
nper (monthly) 240
DATA -> WHAT IF -> GOAL SEEK
 RATE NPV
3% 123.62
4% 73.31
150.00
5% 26.61
100.00
6% -16.79
50.00
7% -57.17
0.00
8% -94.79 2% 4
-50.00
9% -129.88
-100.00
10% -162.65
11% -193.29 -150.00

12% -221.97 -200.00

13% -248.85 -250.00

14% -274.07 -300.00

15% -297.75 -350.00

Discounted cashflow
188.68
178.00
 167.92
158.42
149.45
PVA 842.47
PVA (using function) ₫842.47

200
188.679
177.999
167.924
158.419
149.452

PVA 1042.47275711
PVA (using function)

252.495392
238.2032
224.72
212
200

FVA 1127.418592
FVA(using function) ₫1,127.42

267.64511552
252.495392
238.2032
224.72
212

FVA 1195.06370752
FVA (using function) ₫1,195.06

C
D

B
D

C
C

PV AS THE END OF YEAR 4

C
Interest Ending amount Payment
1000 9000 2000 1
900 8000 1900 2
800 7000 1800 3
700 6000 1700 4
600 5000 1600 5
500 4000 1500 6
400 3000 1400 7
300 2000 1300 8
200 1000 1200 9
100 0 1100 10

Interest Ending amount Payment

1000 9373 1627 1
937.254605117489 8682 1627 2
868.234670746726 7923 1627 3
792.312742938887 7088 1627 4
708.798622350264 6169 1627 5
616.933089702779 5159 1627 6
515.881003790545 4047 1627 7
404.723709287088 2825 1627 8
282.450685333285 1480 1627 9
147.950358984102 0 1627 10
 Chart Title
150.00
100.00
50.00
0.00
2% 4% 6% 8% 10% 12% 14% 16%
-50.00
-100.00
-150.00
-200.00
-250.00
-300.00
-350.00
TOPIC 2: FINANCIAL ANALYSIS
Financial statements:
1. The balance sheet: total assets = total liabilitis + total equity
2. the income statement: revenue - expenses = net income/ income after tax

The income statement

Sale revenue 38576
Expense:
COGS 9018.9
S&A expenses 8543.2
R&D expenses 5845
Income tax expense 2267.6
Net income 12901.3

Retained earnings statement

RE, Jan 1, 2014 43698.8
Add: net income 12901.3
Less: Dividends 3597.7
Re, De 21, 2014 53002.4

CFO: Dòng tiền việc kinh doanh ( revenue, expense )

CFI: Dòng tiền từ việc đầu tư
CFF: dòng tiền từ phát hành trái phiếu

E12-1 Putnam Corporation had these transactions during 2014.

CFI (a) Purchased a machine for $30,000, giving a long-term note in exchan
CFF (b) Issued $50,000 par value common stock for cash.
CFF (c) Issued $200,000 par value common stock upon conversion of bonds
value of $200,000.
CFF (d) Declared and paid a cash dividend of $13,000.
CFI (e) Sold a long-term investment with a cost of $15,000 for $15,000 cas
CFO (f) Collected $16,000 of accounts receivable.
CFO (g) Paid $18,000 on accounts payable.

E12-13. The 2014 accounting records of Rogan Transport reveal these transactions and
events.
Payment of interest $ 10,000 CFO
Payment of salaries and wages $ 53,000 CFO
Cash sales 48,000 CFO
Depreciation expense 16,000 CFO
Receipt of dividend revenue 18,000 CFO
Proceeds from sale of vehicles 812,000 CFI (lợi tức thanh lí)
Payment of income taxes 12,000 CFO
Purchase of equipment for cash 22,000 CFI (mua tbi bằng tiền mặt)

Net income 38,000 ko liên quan

Loss on sale of vehicles 3,000 income statement
Payment for merchandise 97,000 CFO
Payment of dividends 14,000 CFF

Payment for land 74,000 CFI

Payment of operating expenses 28,000 CFO
Collection of accounts receivable 195,000
ctions during 2014.
a long-term note in exchange.

upon conversion of bonds having a face

of $15,000 for $15,000 cash.

Figure 1: Income statement for 2018
Sales 100.000
Expenses
Cost of goods sold 40.000
Wages 5.000
Depreciation 7.000
Interest 500.000
Total expenses 52.500
Income from continuing operations 47.500
Gain from sale of land 10.000
Pretax income 57.500
Provision for taxes 20.000
Net income 37.500
Common dividends declared 8.500
Retained earning

Figure 2: Balance sheet for 2017 and 2018

Assets 2018 2017
Current Assets
Cash 33.000 9.000
Accounts receivable 10.000 9.000
Inventory 5.000 7.000
Noncurrent assets
Land 35.000 40.000
Gross plant and equipment 85.000 60.000
Less: Accumulated depreciation -16.000 -9.000
Net plant and equipmenta 69.000 51.000
Goodwill 10.000 10.000
Total assets 162.000 126.000
Liabilities and equity
Current Liabilities
Account payable 9.000 5.000
Wages payable 4.500 8.000
Interest payable 3.500 3.000
Taxes payable 5.000 4.000
Dividends payable
Noncurrent liabilities 6.000 1.000
Noncurrent liabilities
Bonds 15.000 10.000
Deferred taxes 20.000 15.000
Stockholders's equity
Common stock 40.000 50.000
Retained earnings 59.000 30.000
S
162.000
Total liabilities and stockholeders' equity $ 126.000

Figure 3: Cash Flow Statement for 2018

$
Cash collections 99.000 direct method
Cash inputs -34.000
Cash expenses -8.500
Cash interest 0
Cash taxes -14.000
Cash flow from operations 42.500 CFO
Cash from sale of land 15.000
Purchase of plant and equipment -25.000
Cash flow from investments -10.000 CFI
Sale of bonds 5.000
Repurchase of stock -10.000
Cash dividends -3.500
Cash flow from financing -8.500 CFF
Total cash flow 24.000
 -9000
4000
75000
-45000
-50
Indirect

P12-5A
Indirect method
Tính CFI, CFO, CFF, tổng dòng tiền

Net income 32000

Depreciation expenses 17500
Account payable 4000
Income tax payable -1000
Account receivable 6000
Inventories 8000
Cash flow from operation 38500

Sale of equip 8500

 Cash flow from investment 8500
Repayment of bonds -16000
Repurchased of stock 4000
Cash dividend 20000
Cash flow from financing -32000
Total cash flow 15000

b)

Net income 154580

Depreciation expenses 46500
Loss on disposal of plant assets 7500
CA Account payable 34700
CA Accured expense payable -4500
CL Account receivable 49800
CL Inventories 9650
CL Prepaid expense 2400
CFO 176930
Purchased of plant 100000
Disposal of plant 1500
Purchased of investment 29000
CFI -127500
Cash dividends -26030
Replacement of bond -36000
Issuance common stock 45000
CFF -17030
Total cash flow 32400
 Net income 37000
Depreciation expense 42000
Disposal of equip 2000
Account payable 8730
Account receivable -8000
Inventory 9450
Prepaid expense -5720
CFO 94000
Purchased equip 92000
sale of equip 8000

Purchased of land 40000

Disposal of land 25000
CFI -99000
replacement of bonds 0
Issuance common stock 40000
cash dividends -12000
CFF 28000
Total cash flow 23000
Begin land + purchased - sold = Ending land
130000 + 40000 - X = 145000
X = 25000

Net income 47000

Depreciation expense 6000
Account payable -23000
Income tax payable 3000
Account receivable 9000
Inventory 16000
CFO 8000
Sale of equip 10000
Purchased equip 8000
CFI 2000
Cash dividend 28000
Replacement of bonds 10000
Issuance of common stock 0
CFF -18000
Total cash flow -8000
Net income
Add back: non-cash items ( depreciation, amotisation,..)
Add back loss in financial income/substract gain in financial income
(+) increase in current liabilitites
(-) increase in current assets
operating cash flow

CFO indirect method

Net income 37.500
Adjustment
Depreciation and amortisation 7.000
Gain from land sale 10.000
Account payable 4.000
Wages payable -3.500
Interest payable 500
Taxes payable 1.000
Deferred taxes 5.000
Accounts receivable 1.000
Inventory -2.000

CFO 538.000

Net income 1750000

Depreciation expenses 110000
Account receivable 380000 CA
Inventory 300000 CA
Prepair expenses -150000 CA
Account payables -350000 CL
Accrued expenses payable -100000 CL
Net cash provided by operating acts 1940000

Net income 229000

Depreciation expenses 55000
Loss on disposal of plant assets 16000
Account payable 9000
Income tax payable 6000
Account rêcivable 10000
CFO 305000
Current cash debt coverage ratio = CFO/average current liabilities
1. Net present value

NPV = Σ

NPV > 0: accept the project

NPV < 0: reject the project
Type of project:
independent
mutually exculsive
eg: 100000 usd
NPV (A): $45000
NPV (B): $55000

A B
0 -120 -120
1 60 15
2 45 45
3 42 55
4 18 60
Rate 15% 15%
NPV ₫4.108 (₫2.461)

0 -420000 -100000
1 150000 75000
2 150000 75000
3 150000 0
4 150000 0
rate 12% 12%
NPV 35602 26754

Project
Net cash flow
Points in time t0 t1 t2 t3
A -5266 2500 2500 2500
B -8000 0 0 10000
C -2100 200 2900 0
D -1975 1600 800 0
Rate 16% 16% 16% 16%
NPV 348.72 -1593 228 -1
Payback period
0 -450
1 300 300
2 200 500 payback period 1.75
3 250 700
4 400 900

0 -750
1 300 300
2 320 620 payback 2.40625
3 250 870
4 270 1140
5 100 1240

Discounted payback
DCF
0 -450
1 300 272.727273 272.727272727273
2 200 165.289256 438.01652892562
3 250 187.8287 625.845229151014
4 400 273.205382 899.050611297043
rate 10.0%
Discounted payback period 2.0638

0 -750
1 300 272.727273 272.727272727273
2 320 264.46281 537.190082644628
3 250 187.8287 725.018782870023
4 270 184.413633 909.432415818592
5 100 62.0921323 971.524548124507
Discounted payback period 3.13546296

Point in time 0 1 2 3 4
A -300 500 500 500 500
B -10000 2000 5000 3000 2000
C -15000 5000 4000 4000 5000
D -4000 1000 1000 1000 1000
E -8000 500 500 500 2000
Rate 12% 12% 12% 12% 12%
500 1000 1500 2000
 446.428571 398.59693877551 355.890124 317.759039
446.428571 845.025510204082 1200.91563 1518.67467

2000 7000 10000 12000

1785.71429 3985.9693877551 2135.34074 1271.03616
1785.71429 5771.68367346939 7907.02442 9178.06057

-15000 5000 9000 13000 18000

4464.28571 3188.77551020408 2847.12099 3177.59039
4464.28571 7653.0612244898 10500.1822 13677.7726
Payback period 3.4
DPP 4.68181653
 5 6 7
500 500 500

10000
7000 7000 7000
5000 10000
12% 12% 12%
2500 3000 3500
283.713428 253.315561 226.174608
1802.3881 2055.70366 2281.87827 N/A

N/A

28000
5674.26856
19352.0412
Average account return
AAR = average net income
average book value of investment
Decision rulea: dự án loại trừ
Independent projects: accept project if AAR > RRR
Mutually exculsive projects: accept project with highest AAR > RRR

EX 3
Year
0 -900000
1 50000 50000 45454.5454545 45454.545454545
2 120000 170000 99173.553719 144628.09917355
3 350000 520000 262960.180316 407588.27948911
4 80000 600000 54641.0764292 462229.35591831
5 800000 1400000 496737.058447 958966.41436564
Rate 10%
Payback period 4.375
Discount PP 4.8812925

Profit after Values of asset

Profit before depreciDepreciation
Time depreciation (book value)
strart of year
50000 180000 -130000 900000
120000 180000 -60000 720000
350000 180000 170000 540000
80000 180000 -100000 360000
800000 180000 620000 180000

AAR = average net income

average book value of investment

Average anual profit 100000

Average book value 450000
ARR 0.22222222222222

EX 5
Year
1 800000 400000 400000 2300000
2 800000 400000 400000 1900000
3 800000 400000 400000 1500000
4 800000 400000 400000 1100000
5 800000 400000 400000 700000
Test

Year 0 1 2 3
Units 60000 70000 120000
Selling price 20 21 22.05
Sales 1200000 1470000 2646000
Variable operating cost 10 10.2 10.404
Total cost 600000 714000 1248480
Profit -2800000 600000 756000 1397520
Profit after depreciation -100000 56000 697520
rate 9%
NPV -13431162% <0 reject
IRR 6.88%
payback 3.0824 years depreciation cost
accounting rate 0.09247123214286

Year 0 1 2 3
Units -2800000 60000 70000 120000
60000 130000 250000
end of year payback period 4.375
720000 discounted pp 4.8812925
540000 net present value 58966.41
360000 internal rate of return 12%
180000 depreciation expense (original cost - salvage value)/u
0

1900000
1500000
1100000
700000
300000
 4
45000
23.1525 selling price*(1+5%)
1041862.5 unit*selling price
10.61208 cost*(1+2%)
477543.6 unit*variable operating cost
564318.9 cash flows
-135681.1

700000

4
45000
295000
 >0

riginal cost - salvage value)/useful life 180000

1. Risk adjusted return

Risk adjusted return/rate = Risk free rate + Risk premium

Level of risk Risk free rate Risk premium Risk adjusted rate
Low 9% 3% 12%
Medium 9% 6% 15%
High 9% 10% 19%
discounted rate

The project currently being considered has the following cash flows

Time 0 1 2
Cash flow ($) -100 55 70

If the project is judge to be low risk

NPV 4.91 > 0: ACCEPT THIS PROJECT

If the project is judge to be lmedium risk

NPV 0.76 > 0: ACCEPT THIS PROJECT

If the project is judge to be high risk

NPV -4.35

Calculate the NPV of the following project with a discount rate of 9%

Time 0 1 2 3
Cash flow ($) -800 300 250 400

Now examine impact on NPV of raising the discount ratr by the following risk premiums:
3% point
6% point

Adjested risk rate 0.12

NPV 269.63
Adjested risk rate 15.00%
NPV 19878.86%

2. Sensitivity analysis
 4
500
Initial investment 800000
Cash flow per unit
Sale price 1

Cost:
Labour 0.2
Materials 0.4
Relevant overhead 0.1
0.7
0.3

The finance department have estimated that the

appropriate required rate of return on a project of
this risk class is 15%. Calculated the expected net
present value
profit quantity
anual cash flow 0.3 1000000 300000
Present value of cash flow ₫856,493.51
initial investment (₫800,000.00)
net present value ₫56,493.51

Anual cash flows