Material/weight (quantity) Price/Ingredient Price/1 cup

Waxi Pumpkin juice / 20 liters 200,000/ 20 liters 5000

Chia seeds/ 1kg 70,000/ 1kg 3,000
Cup/ 100 pieces 100,000/ 100 pieces 1,000
Straws / 100 pieces 50,000/100 pieces 500
Plastic bag / 100 pieces 20,000/ 100 pieces 200
Others 1,300
Total 11,000
 Year Order/ 1 day Order/ 1 month Order/1 year
Year 1 60 1,800 21,600
Year 2 120 3,600 43,200
Year 3 150 4,500 54,000
Year 4 170 5,100 61,200
Year 5 200 6,000 72,000
Year Projected sales Number of products necessary Projected Inventory Quantity
Waxi pumpkin 540 cans Waxi pumpkin 25 cans
Chia seeds 1,080 packs Chia seeds 50 packs
Year 1 21,600 Cup 21,600 Cup 1,000
Straw 21,600 Straw 1,000
packing bag 21,600 packing bag 1,000
Waxi pumpkin 1,080 cans Waxi pumpkin 50 cans
Chia seeds 2,160 packs Chia seeds 100 packs
Year 2 43,200 Cup 43,200 Cup 2,000
Straw 43,200 Straw 2,000
packing bag 43,200 packing bag 2,000
Waxi pumpkin 1350 cans Waxi pumpkin 25 cans
Chia seeds 2,700 packs Chia seeds 50 packs
Year 3 54,000 Cup 54,000 Cup 1,000
Straw 54,000 Straw 1,000
packing bag 54,000 packing bag 1,000
Waxi pumpkin 1,530 cans Waxi pumpkin 25 cans
Chia seeds 3,060 packs Chia seeds 50 packs
Year 4 61,200 Cup 61,200 Cup 1,000
Straw 61,200 Straw 1,000
packing bag 61,000 packing bag 1,000
Waxi pumpkin 1,800 cans Waxi pumpkin 25 cans
Chia seeds 3,600 packs Chia seeds 50 packs
Year 5 72,000 Cup 72,000 Cup 1,000
Straw 72,000 Straw 1,000
packing bag 72,000 packing bag 1,000
 Year 1 Year 2 Year 3 Year 4 Year 5
Projected sales 21,600 43,200 54,000 61,200 72,000
Desired ending inventory 1,000 2,000 1,000 1,000 1,000
Available for sale 22,600 45,200 55,000 62,200 72,000
Less: beginning inventory 0 1,000 0 0 0
Total production required 22,600 44,200 55,000 62,200 72,000
 Monthly Annually
Type Value Useful life Savage cost
depreciation depreciation
Equipment 100,000,000 5 1,666,667 20,000,000
Furniture 50,000,000 5 833,333 10,000,000
Total 2,500,000 30,000,000
 Fixed costs
No, Type of cost Total (VND/year)
1 Building 180,000,000
2 Furniture 50,000,000
3 Equipment 100,000,000
4 Certain salaries 345,600,000
5 Insurance 12,000,000
6 Office expense 100,000,000
TOTAL 787,600,000

Table of Operating budget

Expense Year 1 Year 2 Year 3
Building 180,000,000 180,000,000 180,000,000
Furniture 50,000,000 0 0
Equipment 100,000,000 0 0
Certain salaries 345,600,000 345,600,000 345,600,000
Insurance 12,000,000 12,000,000 12,000,000
Office expense 100,000,000 100,000,000 100,000,000
Marketing 35,000,000 75,000,000 120,000,000
Sales expense 60,000,000 60,000,000 60,000,000
Total expense 882,600,000 772,600,000 817,600,000
 Variable costs
Type of cost
Business card
Run ads on Facebook/ Instagram
Marketing
Run ads on Food app
Hiring KOLs, Influencer
Sales expense Variable salaries

get
Year 4 Year 5
180,000,000 180,000,000
0 0
0 0
345,600,000 345,600,000
12,000,000 12,000,000
100,000,000 100,000,000
120,000,000 120,000,000
60,000,000 60,000,000
817,600,000 817,600,000
costs
Price (VND/1 year)
5,000,000
30,000,000
40,000,000
45,000,000
60,000,000
 Items
Price per cup 22,000
Cups sold year 1 21,600 cups
Cups sold year 2 43,200 cups
Cups sold year 3 54,000 cups
Cups sold year 4 61,200 cups
Cups sold year 5 72,000 cups
Variable cost per cup 11,000 VND
Fixed cost 974,800,000 VND
Depreciation 30,000,000 VND
Tax rate 25%
Required return 20%
Initial Net working captital 70000000 VND
Equiment and Furniture 150,000,000
 Year 1 Year 2 Year 3 Year 4
(current)
Sales Revenue 601,560,000 1,203,120,000 1,503,900,000 1,704,420,000
Fixed Cost 787,600,000 787,600,000 787,600,000 787,600,000
Variable Cost 95,000,000 135,000,000 180,000,000 180,000,000
Depreciation 30,000,000 30,000,000 30,000,000 30,000,000
EBIT (311,040,000) 250,520,000 506,300,000 706,820,000
Tax (25%) (77,760,000) 62,630,000 126,575,000 176,705,000
Net Income (233,280,000) 187,890,000 379,725,000 530,115,000

EBIT = sale - cost - other expenses - depre

 Year 5 Price after VAT Shipper receive
Distance Price (VND)
(VND) (10%) 80% (VND)
2,005,200,000 0- 3km 15,000 13,500 10,800
787,600,000 3-4km 20,000 18,000 14,400
180,000,000 4-5km 25,000 22,500 18,000
30,000,000 5-6km 30,000 27,000 21,600
1,007,600,000 6-7km 35,000 31,500 25,200
251,900,000 7-8km 40,000 36,000 28,800
755,700,000 8-9km 45,000 40,500 32,400
9-10km 50,000 45,000 36,000
Cost 32,500 29,250 23,400
Wings receive
20% (VND)
2,700
3,600
4,500
5,400
6,300
7,200
8,100
9,000
5,850
 Year 0 Year 1 Year 2
(current)
Sale Revenue 601,560,000 1,203,120,000
Fixed cost 787,600,000 787,600,000
Variable cost 95,000,000 135,000,000
Depreciation 30,000,000 30,000,000
EBIT (311,040,000) 250,520,000
Tax (25%) (77,760,000) 62,630,000
Net Income (233,280,000) 187,890,000
Operating cash flow (203,280,000) 217,890,000
Change in NWC (70,000,000)
Capital Spending (150,000,000)
Total project cash flow (220,000,000) (203,280,000) 217,890,000

OCF = EBIT x (1 - 25%) + D

NPV $ 613,025,700.87
IRR 61%
Payback period 2.0051 years

Year 1 Year 2 Year 3

Net income (233,280,000) 187,890,000 379,725,000
Depreciation 30,000,000 30,000,000 30,000,000
OCF (203,280,000) 217,890,000 409,725,000
 Year 3 Year 4 Year 5

1,503,900,000 1,704,420,000 2,005,200,000

787,600,000 787,600,000 787,600,000
180,000,000 180,000,000 180,000,000
30,000,000 30,000,000 30,000,000
506,300,000 706,820,000 1,007,600,000
126,575,000 176,705,000 251,900,000
379,725,000 530,115,000 755,700,000
409,725,000 560,115,000 785,700,000
70,000,000

409,725,000 560,115,000 855,700,000

Year 4 Year 5
530,115,000 755,700,000
30,000,000 30,000,000
560,115,000 785,700,000
 The cost of equity
Stock Price 30,000 Bond issue
Market risk premium 5.3% Time to maturity
Risk free rate 2.8% Coupon rate
Beta 1.5 Market price
Number of share outstanding 10,000 Par value

Annuity cash flows in 5 years

requity = 1.5 + 1.2% x 5.3% 15.01% (=1,000,000 x 7%)

The maket value of equity The cos

E = 30,000 x 10,000 300,000,000
1,000,000 =

r
→ debt = 4.7%
D = 1,100,000 x 100

[𝐷/𝑉 ×𝑘_𝑑𝑒𝑏𝑡 ×(1 −𝑇𝑐)]+ [𝐸/𝑉 ×𝑘_𝑒

WACC =

= [110,000,000/(110,000,000+300,000,000) ×4.7%
= 11,93%
 100
5
7%
1,100,000
1,000,000

70,000

The cost of debts

70,000 70,000 70,000 70,000 70,000 + 1,000,000
+ 2 + 3 + 4 + 5
1 + rdebt (1 + rdebt) (1 + rdebt) (1 + rdebt) (1 + rdebt)

110,000,000 VND

𝑏𝑡 ×(1 −𝑇𝑐)]+ [𝐸/𝑉 ×𝑘_𝑒𝑞𝑢𝑖𝑡𝑦 ]

300,000,000) ×4.7% ×(1 −25%)]+ [300,000,000/(110,000,000+300,000,000) ×15.01%" " ]

15.01%" " ]
 Year 0 Year 1 Year 2
(current)
Sale Revenue 601,560,000 1,203,120,000
Fixed cost 787,600,000 787,600,000
Variable cost 95,000,000 135,000,000
Depreciation 30,000,000 30,000,000
EBIT (311,040,000) 250,520,000
Tax (25%) (77,760,000) 62,630,000
Net Income (233,280,000) 187,890,000
Operating cash flow (203,280,000) 217,890,000
Change in NWC (70,000,000)
Capital Spending (150,000,000)
Total project cash flow (220,000,000) (203,280,000) 217,890,000

Assume that SALES will be 1% higher/lower than baseline values. Provided

other inputs remain constant, the cash flows will be as follows:
Higher case:
Year 0 Year 1 Year 2
(current)
Sale Revenue 607,575,600 1,215,151,200
Fixed cost 787,600,000 787,600,000
Variable cost 95,000,000 135,000,000
Depreciation 30,000,000 30,000,000
EBIT (305,024,400) 262,551,200
Tax (25%) (76,256,100) 65,637,800
Net Income (228,768,300) 196,913,400
Operating cash flow (198,768,300) 226,913,400
Change in NWC (70,000,000)
Capital Spending (150,000,000)
Total project cash flow (220,000,000) (198,768,300) 226,913,400

Lower case:
Year 0 Year 1 Year 2
(current)
Sale Revenue 595,544,400 1,191,088,800
Fixed cost 787,600,000 787,600,000
Variable cost 95,000,000 135,000,000
Depreciation 30,000,000 30,000,000
EBIT (317,055,600) 238,488,800
 Tax (25%) (79,263,900) 59,622,200
Net Income (237,791,700) 178,866,600
Operating cash flow (207,791,700) 208,866,600
Change in NWC (70,000,000)
Capital Spending (150,000,000)
Total project cash flow (220,000,000) (207,791,700) 208,866,600

Assume that FIXED COST will be 1% higher/lower than baseline values.

Provided other inputs remain constant, the cash flows will be as follows:

Higher case:
Year 0 Year 1 Year 2
(current)
Sale Revenue 601,560,000 1,203,120,000
Fixed cost 795,476,000 795,476,000
Variable cost 95,000,000 135,000,000
Depreciation 30,000,000 30,000,000
EBIT (318,916,000) 242,644,000
Tax (25%) (79,729,000) 60,661,000
Net Income (239,187,000) 181,983,000
Operating cash flow (209,187,000) 211,983,000
Change in NWC (70,000,000)
Capital Spending (150,000,000)
Total project cash flow (220,000,000) (209,187,000) 211,983,000

Lower case:
Year 0 Year 1 Year 2
(current)
Sale Revenue 601,560,000 1,203,120,000
Fixed cost 779,724,000 779,724,000
Variable cost 95,000,000 135,000,000
Depreciation 30,000,000 30,000,000
EBIT (303,164,000) 258,396,000
Tax (25%) (75,791,000) 64,599,000
Net Income (227,373,000) 193,797,000
Operating cash flow (197,373,000) 223,797,000
Change in NWC (70,000,000)
 Capital Spending (150,000,000)
Total project cash flow (220,000,000) (197,373,000) 223,797,000
 Year 3 Year 4 Year 5

1,503,900,000 1,704,420,000 2,005,200,000 Require return

787,600,000 787,600,000 787,600,000 NPV (VND)
180,000,000 180,000,000 180,000,000 IRR (VND)
30,000,000 30,000,000 30,000,000
506,300,000 706,820,000 1,007,600,000
126,575,000 176,705,000 251,900,000
379,725,000 530,115,000 755,700,000
409,725,000 560,115,000 785,700,000
70,000,000

409,725,000 560,115,000 855,700,000

Year 3 Year 4 Year 5

1,518,939,000 1,721,464,200 2,025,252,000 101% Require return

787,600,000 787,600,000 787,600,000 NPV (VND)
180,000,000 180,000,000 180,000,000 % change in NPV
30,000,000 30,000,000 30,000,000 Sensitivity of NPV
521,339,000 723,864,200 1,027,652,000
130,334,750 180,966,050 256,913,000
391,004,250 542,898,150 770,739,000
421,004,250 572,898,150 800,739,000
70,000,000

421,004,250 572,898,150 870,739,000

Year 3 Year 4 Year 5

1,488,861,000 1,687,375,800 1,985,148,000 99% Require return

787,600,000 787,600,000 787,600,000 NPV (VND)
180,000,000 180,000,000 180,000,000 % change in NPV
30,000,000 30,000,000 30,000,000 Sensitivity of NPV
491,261,000 689,775,800 987,548,000
 122,815,250 172,443,950 246,887,000
368,445,750 517,331,850 740,661,000
398,445,750 547,331,850 770,661,000
70,000,000

398,445,750 547,331,850 840,661,000

Year 3 Year 4 Year 5

1,503,900,000 1,704,420,000 2,005,200,000

795,476,000 795,476,000 795,476,000 101% Require return
180,000,000 180,000,000 180,000,000 NPV (VND)
30,000,000 30,000,000 30,000,000 % change in NPV
498,424,000 698,944,000 999,724,000 Sensitivity of NPV
124,606,000 174,736,000 249,931,000
373,818,000 524,208,000 749,793,000
403,818,000 554,208,000 779,793,000
70,000,000

403,818,000 554,208,000 849,793,000

Year 3 Year 4 Year 5

1,503,900,000 1,704,420,000 2,005,200,000

779,724,000 779,724,000 779,724,000 99% Require return
180,000,000 180,000,000 180,000,000 NPV (VND)
30,000,000 30,000,000 30,000,000 % change in NPV
514,176,000 714,696,000 1,015,476,000 Sensitivity of NPV
128,544,000 178,674,000 253,869,000
385,632,000 536,022,000 761,607,000
415,632,000 566,022,000 791,607,000
70,000,000
415,632,000 566,022,000 861,607,000
 20%
613,025,700.87
61%

20%
641,787,594.97
4.69%
4.69

20%
584,263,806.78
-4.69%
-4.69
 20%
595,360,154.96
-2.88%
-2.88

20%
630,691,246.78
2.88%
2.88