Assume that ABC Inc. is not under budget constraint. They consider two mutually exclusive projects as follow:

Year	Net cash flows (A) (thousand VND)	Net cash flows (B) (thousand VND)
2020	-364.000	-364.000
2021	46.000	320.000
2022	68.000	48.000
2023	68.000	60.000
2024	458.000	75.000
2025	45.000	50.000

1. If the investors require a return of 11 percent on this investment, calculate the discounted payback, NPV, IRR criterion, respectively. Which project should ABC Inc. choose? Why? (1 point)

2. To raise fund for the chosen project, ABC Inc. decide to issue 5-year bonds at a coupon rate of 5 percent. The bonds make annual payments and are priced at par value of 1.000.000VND, ignore the flotation cost. As an individual investor, choose your own required rate of return and calculate bond valuation at the day the company issues that bond, should you invest in that bond? Why? Which is/are risk(s) when investors buy and hold that bond to its maturity? (0.75 point)

3. Apply Fisher's formula, calculate the real return of investors on the company's chosen project in 2020? (0.25 point)