You have a project with the following information:

The total initial investment capital is 1,600 million VND for equipment. The installation of equipment and preparation for production will be completed by the end of year 0 of the project. The operation of the project will last for 3 years. The life of the equipment is 6 years, and the residual value after 6 years is 0. In year 1, the project's revenue is 600 million VND, and operating costs (excluding depreciation and interest expenses) are 150 million VND. It is expected that revenue will grow at 10% per year over the life of the project, and operating expenses (excluding depreciation and interest expenses) increase by 8% per year. To finance the project, the investor borrowed 60% of the total initial investment capital from a bank with an interest rate of 10%/year, the principal is paid in 3 years equally starting from the end of year 1. Interest is paid annually; it is calculated on the debt amount owned at the beginning of each year. The equipment is depreciated using the straight-line method and its disposal value is equal to its book value at the end of year 3 and is received at the end of year 3. The corporate income tax rate is 20%. MARR after tax is 15%

1) Construct a table (the plan) of borrowing and repaying debt (principal and interest)

2) Construct a table of depreciation and book value of the equipment

3) Construct a table to show:

a. Before tax cashflow

b. Taxable income

c. Tax payment

d. After-tax cash flow

4) Calculate the PW (or NPV) of the project. What is the conclusion?

5) Calculate the IRR of the project.

6) Using What-if analysis in MS Excel, investigate what the increasing rate of operating expenses makes the project not valuable anymore.