1.
The additional cash flow is understood as:
a. All of the above answers are correct.
b. The cash flow of the investor in the case of an alternative investment project compared to
the cash flow of the investor in the case of no alternative investment project.
c. The cash flow of the investor in the case of an expansion investment project compared to
the cash flow of the investor in the case of no expansion investment project.
d. The cash flow of the investor in the case of a new project compared to the case of no new
project.
2. Which of the following cash flows can be prepared using the indirect method?
a. Net cash flow from the Equity perspective (EPV)
b. Net cash flow from the Total Equity perspective (AEPV)
c. All of the above answers are correct
d. Net cash flow from the Total Investment perspective (TIPV)
3. The time of the project cash flow is
a. All of the above answers are incorrect
b. Beginning of the period
c. Any time during the period
d. End of the period
4. Which of the following cash flows can be prepared using the direct method?
a. Net cash flow from the Total Equity Perspective (AEPV)
b. All of the above are correct
c. Net cash flow from the Total Investment Perspective (TIPV)
d. Net cash flow from the Equity Perspective (EPV)
5. Characteristics of the profit stream:
a. All of the above are correct.
b. Nominal profit recorded in the accounting books.
c. Real profit attracted by investors.
d. Accurate measurement of the project's debt repayment capacity.
6. The period of the project's cash flow is usually
a. Month
b. Year
c. Day
d. Quarter
7. Characteristics of the project's cash flow:
a. Accurate assessment of the project's debt repayment capacity.
b. Shows the actual amount of money that project investors are holding or in deficit.
c. Accurately measures the timing of cash disbursements or receipts.
d. All of the above are correct.
8. Which of the following appraisal perspectives is a financial perspective?
a. All-Equity Viewpoint (AEPV)
b. Equity Viewpoint (EPV)
c. All of the above are correct
d. Total Investment Viewpoint (TIPV)
9. The liquidation value of plant and equipment is determined based on:
a. The market price of plant and equipment in the liquidation year estimated by experts in
case it can be assessed at market price
b. The remaining value of plant and equipment at the end of the last operating year of the
project in case it cannot be assessed at market price
c. All of the above are correct
d. The remaining value of the plant and equipment at the beginning of the liquidation year in
case it cannot be assessed at market price
10. If EBIT is earnings before interest and taxes; NOPAT is operating income after tax;
EAT is income after tax; Dep is depreciation expense; Int is interest expense; TS is tax
savings from debt and ∆WC is change in working capital, which of the following
formulas is the formula to determine operating cash flow (without tax shield) from
interest?
a. EBIT*(1-t%) + Dep + TS + Int - ∆WC
b. EAT + Dep + Int -∆WC
c. NOPAT + Dep - ∆WC
d. All of the above are incorrect
11. The purpose of preparing intermediate spreadsheets in the project cash flow
planning process is to:
a. Evaluate the project's ability to repay the loan
b. Calculate income tax each year
c. Estimate the project's working capital
d. Establishing project cash flows
12. The purpose of cash flow planning is to determine:
a. Determine the funding needs and sources of funding for the project.
b. The financial performance of the project.
c. All answers are correct.
d. The debt repayment capacity and payback period of the project.
13. Why should we use the construction completion date to divide the project cash flow?
a. Both answers B and C are incorrect
b. To facilitate the determination of cash outflows and receipts each year
c. To separate the investment cash flow and operating cash flow of the project
d. Both answers A and B are correct
14. Which of the following statements is incorrect when planning the project cash flow?
a. Calculate the incremental cash flow of the project
b. Include sunk costs
c. Include the impacts that increase or decrease the cash flow of other projects
d. Including opportunity cost
15. Working capital requirements during the project's operating phase are:
a. All of the above are correct
b. Maximum to maintain normal project operations
c. Minimum to maintain normal project operations
d. Average to maintain normal project operations
16. Changing the depreciation period and depreciation method will:
a. Indirectly affect the project cash flow
b. Directly and indirectly affect the project cash flow
c. Directly affect the project cash flow
d. Neither directly nor indirectly affect the project cash flow
17. Liquidation of fixed assets of the project is included in
a. All of the above are incorrect
b. Operating cash flow
c. Investment cash flow
d. Financing cash flow
18. Consider the following items: i/ Investment project preparation costs; ii/ Workers'
salaries during production; iii/ Depreciation expenses; iv/ Revenue from sales; v/
Project construction costs. Which of the above items are not recorded in the cash
inflows and outflows of the project?
a. ii, iii, v
b. i, ii, iii, v
c. iii, iv, v
d. i, iii
19. Which of the following cash flows is included in the owner's capital contribution to
the project?
a. Investment cash flow
b. Financing cash flow
c. Operating cash flow
d. All of the above answers are incorrect
20. If EBIT is the profit before interest and tax; NOPAT is the operating income after
tax; EAT is the income after tax; Dep is the depreciation expense; Int is the interest
expense; TS is the tax savings due to debt and ∆WC is the change in working capital,
which of the following formulas is the formula to determine the operating cash flow
(with tax shield) from interest?
a. EBIT*(1-t%) + Dep + TS + Int - ∆WC
b. NOPAT + Dep - ∆WC
c. EAT + Dep + Int -∆WC
d. All of the above calculations are incorrect
21. Project cash flow from the Equity perspective (EPV) is the cash flow of the project
in the following cases:
a. The project has debt and uses equity
b. All of the above answers are incorrect
c. The project does not have debt
d. Project after debt repayment to the sponsor
22. Indicate which of the following changes reduces the project's net operating cash
flow?
a. Increase minimum cash balance
b. Decrease inventory
c. Decrease receivables
d. Increase payables
23. Choose the correct statement:
a. Cash flow (AEPV) takes into account the tax shield benefit from interest while cash flow
(TIPV) does not take into account the tax shield benefit from interest
b. Cash flow (AEPV) does not take into account the tax shield benefit from interest while
cash flow (TIPV) takes into account the tax shield benefit from interest
c. Both cash flows (AEPV) and (TIPV) do not take into account the tax shield benefit from
interest
d. Both cash flows (AEPV) and (TIPV) take into account the tax shield benefit from interest
24. Project cash flow from the Owner's Equity perspective (EPV) measures the financial
performance of the project for:
a. Owner
b. Investor
c. Owner and bank
d. Bank
25. Investment cash flow is the cash inflow and outflow for
a. Fixed asset investment activities of the project
b. Asset investment activities of the project
c. Real asset investment activities of the project
d. Financial asset investment activities of the project
26. Which of the following cash flows can be prepared using the indirect method?
a. Investment cash flow
b. All of the above answers are correct
c. Operating cash flow
d. Financing cash flow
27. Project cash flow from the Total Owner's Equity perspective (AEPV) is the cash
flow of the project in the case of:
a. Project without debt
b. Project with debt and using equity
c. Project after paying off debt to sponsor
d. All of the above answers are incorrect
28. Project financing cash flow is cash inflow and outflow for
a. Project equity capital mobilization activities
b. Project debt capital mobilization activities
c. Project internal capital mobilization activities
d. Project external capital mobilization activities
29. Project cash flow from the Total Investment Capital (TIPV) perspective is the
project cash flow in the case of:
a. Project after paying off debt to sponsor
b. All of the above answers are incorrect
c. Project with debt and using equity
d. Project without debt
30. Indicate the impact of depreciation expense on the project's cash flow or income?
a. Reduce the project's cash flow by the annual depreciation expense
b. Increase taxable income by exactly equal to annual depreciation expense
c. Increase project cash flow by exactly equal to annual depreciation expense
d. Decrease taxable income by exactly equal to annual depreciation expense
31. Which of the following cash flows can be prepared using the direct method?
a. Investment cash flow
b. All of the above are correct
c. Operating cash flow
d. Financing cash flow
32. Net cash flow from Total Equity perspective (AEPV) is determined by:
a. Operating cash flow (without tax shield) + Investment cash flow
b. Total Investment cash flow (TIPV) – Interest tax savings
c. Equity cash flow (EPV) + Interest tax savings – Financing cash flow
d. All of the above are correct
33. Net cash flow from Total Investment perspective (TIPV) is determined by:
a. Operating cash flow (with tax shield) + Investment cash flow
b. All of the above are correct
c. Net cash flow Total Equity + Tax savings from interest
d. Net cash flow Equity – Financing cash flow
34. Indicate which of the following items is included in the project cash flow from the
Equity Perspective (EPV)?
a. Raising equity
b. Paying dividends to shareholders
c. Cost of drafting and appraising investment projects
d. Opportunity cost of land
35. The project cash flow includes:
a. Investment cash flow
b. Financing cash flow
c. Operating cash flow
d. All of the above are correct
36. Operating cash flow is the cash inflow and outflow for
a. Production and supply of project outputs
b. Investment activities of the project
c. Project capital mobilization activities
d. Project financing activities
37. Payments to suppliers of raw materials are included in
a. All of the above are incorrect
b. Financing cash flow
c. Operating cash flow
d. Investing cash flow
38. The net cash flow from the Equity perspective (EPV) is determined by:
a. Operating cash flow (with tax shield) + Investing cash flow + Financing cash flow
b. All of the above are correct
c. Net cash flow from the Total Investment perspective (TIPV) + Financing cash flow
d. Operating cash flow (without tax shield) + Investing cash flow + Tax shield + Financing
cash flow
39. Project cash flow from the Total Equity Perspective (AEPV) measures the financial
performance of the project for:
a. Investor
b. Bank
c. Owner and Bank
d. Owner
40. Project cash flow from the Total Investment Perspective (TIPV) measures the
financial performance of the project for:
a. Owner and Bank
b. Bank
c. Owner
d. Investor
41. What is the project's operating cash flow according to TIPV if the pre-tax profit is
VND5 billion, depreciation expense in the year is VND4.1 billion, corporate income tax
is 20% and interest = VND2.4 billion?
(Unit: billion VND, rounded to 2 decimal places. Students only need to fill in the answer, not
the unit)
42. EPV cash flow is the cash flow with tax shield from interest
a. True
b. False
43. AEPV cash flow is the cash flow with tax shield from interest
a. True
b. False
44. The additional cash flow is understood as:
a. The cash flow of the investor in the case of an expansion investment project compared to
the cash flow of the investor in the case of no expansion investment project.
b. The cash flow of the investor in the case of an alternative investment project compared to
the cash flow of the investor in the case of no alternative investment project.
c. The cash flow of the investor in the case of a new project compared to the case of no new
project.
d. All of the above answers are correct.
45. Indicate which of the following items is included in the project cash flow from the
Equity Perspective (EPV)?
a. Opportunity cost of land
b. Raising equity
c. Cost of drafting and appraising investment projects
d. Paying dividends to shareholders
46. Given:
Revenue in cash = 26.7 billion VND
Cash expenses in cash = 4 billion VND
Depreciation and other allocated expenses = 0.8 billion VND
Interest payment = 1 billion VND
Corporate income tax = 20%
The project has no working capital.
Calculate cash flow from the TIPV perspective.
(Unit: billion VND, rounded to 2 decimal places. Students only need to fill in the answer, not
the unit)
47. EPV cash flow includes a part of FCF financial cash flow
a. False
b. Correct
48. Characteristics of profit flow:
a. Nominal profit is recorded in accounting books.
b. Accurately measures the project's debt repayment ability.
c. All of the above answers are correct.
d. Real profit attracted by investors.
49. Characteristics of project cash flow:
a. Accurately measures the time of money disbursement or receipt.
b. Accurately assesses the project's ability to pay debt obligations.
c. All of the above answers are correct.
d. Shows the actual amount of money that project investors are holding or in deficit.
50. TIPV cash flow is the cash flow with tax shield from interest
a. True
b. False
51. Given:
EAT has loan of the project = 2.5 billion VND
Depreciation and allocated expenses = 6 billion VND
Interest payment = 1.9 billion VND
Corporate income tax = 20%
The project has no working capital.
Calculate cash flow according to TIPV perspective.
(Unit: billion VND, rounded to 2 decimal places. Students only need to fill in the answer, not
the unit)
52. Which of the following cash flows can be prepared by the direct method?
a. All of the above answers are correct
b. Net cash flow according to Total Investment (TIPV) perspective
c. Net cash flow according to Total Equity (AEPV) perspective
d. Net Cash Flow from Equity Perspective (EPV)
53. TIPV Cash Flow is the Cash Flow with Depreciation Tax Shield
a. False
b. True
54. AEPV Cash Flow Includes FCF Finance Cash Flow
a. True
b. False
55. EPV Cash Flow is the Cash Flow with Depreciation Tax Shield
a. False
b. True
56. AEPV cash flow is the cash flow with tax shield from depreciation
a. False
b. True
57. Given that in the year the project situation is as follows:
Revenue = 41.5 billion VND
Costs (excluding depreciation and allocation) = 4.4 billion VND
Depreciation and allocation expenses = 18 billion VND
Interest payment = 1 billion VND
Corporate income tax 20%
Change in minimum cash balance = 7.8 billion VND
Change in receivable balance = 6.4 billion VND
Change in inventory balance = 2 billion VND
Change in payable balance = 6.3 billion VND
Calculate cash flow from the TIPV perspective.
(Unit: billion VND, rounded to 2 decimal places. Students only need to fill in the answer, not
the unit)
58. Given that EBIT is 10 billion VND, depreciation expense in the year is 1.9 billion
VND, interest is 2.2 billion VND, corporate income tax is 20%. What is the project's
operating cash flow according to TIPV?
(Unit: billion VND, rounded to 2 decimal places. Students only need to fill in the answer, not
the unit)
59. Which of the following cash flows can be prepared using the indirect method?
a. Net cash flow from the Owner's Equity perspective (EPV)
b. Net cash flow from the Total Investment Perspective (TIPV)
c. Net cash flow from the Total Equity Perspective (AEPV)
d. All of the above are correct
60. TIPV cash flow includes FCF financial cash flow
a. False
b. Correct
61. Which of the following is a sunk cost of the project?
a. Project establishment cost
b. Project company establishment cost.
c. Design and construction cost
d. Construction start-up cost
62. When establishing the project's operating cash flow, the opportunity cost calculated
at the market rental price will:
a. Be recorded in the project's operating cash flow (direct method) and be adjusted to increase
with the project's after-tax profit (indirect method).
b. Not recorded in the cash outflow from the project's operations (direct method) and adjusted
down with the project's after-tax profit (indirect method).
c. Not recorded in the cash outflow from the project's operations (direct method) and adjusted
up with the project's after-tax profit (indirect method).
d. Recorded in the cash outflow from the project's operations (direct method) and adjusted
down with the project's after-tax profit (indirect method).
63. Choose the correct statement:
a. In the case where the land used for the project is leased land with annual land rent
payment, the project has no liquidation value from the land
b. In the case where the land used for the project (long-term) is purchased land, the
liquidation value of the land is calculated at the market price in the year of land purchase
c. In the case of capital contribution using the investor's (long-term) land use right, the
liquidation value of the land is calculated as in the case of land purchase
d. All of the above statements are correct
64. When the project incurs opportunity costs calculated at market rents, these costs
will:
a. Not be recorded in the cash outflows from the project's operations and not be recorded in
the project's operating costs.
b. Be recorded in the cash outflows from the project's operations and be recorded in the
project's operating costs
c. Be recorded in the cash outflows from the project's operations
d. Be recorded in the project's operating costs
65. Which of the following costs can be considered sunk costs of the project:
a. Costs incurred during the investment preparation phase.
b. Costs not related to the investment decision.
c. All of the above answers are correct.
d. Costs that cannot be recovered if the project is not implemented.
66. Which of the following depreciation methods increases the project's operating cash
flow if the indirect impact through income tax is not taken into account?
a. Straight line
b. Decreasing balance
c. Output
d. None of the following methods increases the project's operating cash flow
67. A company specializes in manufacturing steel pipes. The company's management is
considering a project to manufacture aluminum pipes, a new product line of the
company. Based on the principle of incremental cash flow, should the project using 20%
of the remaining capacity of the company's previously invested fire protection system
worth VND 10 billion be included in the project's cash flow?
a. Yes
b. No
68. Which of the following impacts increases the cash flow of other projects?
a. Yogurt project and Fermented yogurt project
b. Oral medicine project and Injectable medicine project
c. Billiards café project and Office lunch project.
d. Gas stove project and Electric stove project
69. When should sunk costs be included in the project cash flow?
a. When the sunk costs are borne by the investor
b. When the sunk costs are relatively large
c. Sunk costs should not be included in the project cash flow
d. When the sunk costs are the costs of project establishment and appraisal
70. Given:
Revenue in cash = 17.3 billion VND
Cost in cash = 7.7 billion VND
Depreciation and other allocated expenses = 2.1 billion VND
Interest payment = 1.2 billion VND
Corporate income tax rate is 20%
The project has no working capital.
Calculate the after-tax profit of the project.
(Unit: billion VND, rounded to 2 decimal places. Students only need to fill in the answer, not
the unit)
71. A company is considering a new project. The company currently owns a piece of
land that can be used for the project, but the existing construction on that land must be
demolished. Indicate which of the following costs will not be included in the project's
cash flow?
a. Demolition and site clearance costs.
b. Road construction costs for the project last year.
c. Cash flow lost due to requisitioning equipment from another project for this project.
d. Market price of the existing construction.
72. A company specializes in manufacturing steel pipes. The company's board of
directors is considering a project to manufacture aluminum pipes, a new product line of
the company. Based on the principle of incremental cash flow, should the land owned by
the company used for the project with a market value of VND 100 billion be included in
the project's cash flow?
a. No
b. Yes
73. A company specializes in manufacturing steel pipes. The company's board of
directors is considering a project to manufacture aluminum pipes, a new product line of
the company. Based on the principle of incremental cash flow, should the company's
revenue from selling steel pipes decrease by VND 300 billion due to the project
implementation be included in the project's cash flow?
a. No
b. Yes
74. The company is considering investing in an expansion project. The company
currently owns a piece of land with a market value of VND 120 billion and intends to
use it for the project. If the project is implemented, the cost of purchasing the land is:
a. Zero because the project does not require purchasing land
b. Book value of the land at the time of purchase
c. Market value of the land at the beginning of the project
d. Market price of land at the time of purchase
75. Opportunity cost is understood as:
a. The next lowest return foregone.
b. The best return foregone.
c. The lowest return foregone.
d. The next best return foregone.
76. The cost of preparing the environmental impact assessment report of the project:
a. Considered as a pre-operational cost
b. Considered as an opportunity cost
c. Recorded in the investment cash flow of the project
d. Recorded in the total investment but not recorded in the investment cash flow of the
project
77. The principle of recording sunk costs of the project is:
a. Considered as a cash operating cost of the project
b. All of the above answers are correct
c. Recorded in the total investment of the project
d. Calculated in the cash flow for the initial investment of the project
78. The opportunity cost of land used in the project is determined by:
a. State rental price
b. Market land rental price
c. Price determined by capital contributors
d. Market transfer price
79. Which of the following impacts reduces the cash flow of other projects?
a. Pig Farming Project and Catfish Farming Project
b. Apple Watch Project and Iphone Project
c. Gas Station Project and Rest Stop Project
d. Walking Shoe Project and Running Shoe Project
80. Which of the following statements about land liquidation value is correct?
a. All of the above statements are incorrect
b. The initial value of the land liquidation is always equal to the market price in the year of
liquidation
c. Record all profits and losses related to land in the cash inflow from project liquidation
d. The initial value of the land liquidation is always equal to the initial value
81. Given a project with the following parameters:
NĂM 0 1 2 3 4
DSCR 1.76978 1.30159 1.58407
Is the borrowing and repayment schedule of the project appropriate?
a. This borrowing and repayment schedule is appropriate
b. This borrowing and repayment schedule is NOT appropriate
82. The project is capable of paying the principal and interest if the DSCR is > 0 for at
least one year
a. False
b. True
83. Construction loan interest is recognized in the project's financing cash flows when it
arises during the construction period and is included in the principal.
a. True
b. False
84. Is the following statement true or false when dealing with borrowing interest arising
during the project's implementation period: Always included in the principal for
calculating interest for the following period.
a. True
b. False
85. Is the following statement true or false when dealing with borrowing interest arising
during the project's implementation period: Not capitalized into the original cost of
fixed assets formed after investment
a. True
b. False
86. Construction loan interest is recognized in the project's financing cash flows when it
arises during the construction period and is capitalized
a. True
b. False
87. Regarding interest during the construction period, which of the following statements
is correct?
a. Interest during the construction period is the interest payable for construction financing
b. Interest during the construction period with a grace period is not included in the total
investment
c. Interest during the construction period with a grace period is not capitalized into the
original cost of fixed assets formed after the investment
d. Interest during the construction period is not included in the investment cash flow
88. Given the following parameters for a project:
Năm 0 1 2 3 4 Tổng 5 năm
OCF 123 145 146 10 424
ICF -258 128 -130
TIPV -258 123 145 146 138 294
EPV -108 53.5 82 89.5 138 255
Interest 19.5 13 6.5 39
Principle 50 50 50 150
The project's DSCR for year 2 is
a. 2.30 145/(50 + 13)
b. Insufficient data to calculate
c. 2.90
d. 1.30
89. Given the following parameters for a project:
NĂM 0 1 2 3 4
DSCR 0.76978 1.30159 1.58407
Is the project's borrowing and repayment schedule appropriate?
a. This borrowing and repayment schedule is appropriate
b. This borrowing and repayment schedule is NOT appropriate
90. Interest expenses during the project's operating period are not recorded in the cash
outflows from operations under the TIPV perspective. Is the above statement true or
false?
a. True
b. False
91. Is the following statement true or false when dealing with interest incurred during
the project implementation period: Considered as a cash outflow when preparing
investment cash flows.
a. False
b. True
92. Interest expense during the construction period without a grace period is recognized
in the cash outflow from financing under the TIPV perspective. Is the above statement
true or false?
a. True
b. False
93. The project is able to pay its principal and interest obligations if the DSCR in all
years >1
a. False
b. True
94. Construction interest is recognized in the project financing cash flow when it arises
during the construction period and is not subject to a grace period.
a. True
b. Incorrect
95. Given the following project parameters:
Năm 0 1 2 3 4 Tổng 5 năm
OCF 123 145 146 10 424
ICF -258 128 -130
TIPV -258 123 145 146 138 294
EPV -108 53.5 82 89.5 138 255
Interest 19.5 13 6.5 39
Principle 50 50 50 150
Given the project's year 1 DSCR is
a. 2.46
b. 1.77 123/(50 + 19.5)
c. All are incorrect
d. Insufficient data to calculate
96. The project is capable of paying principal and interest if the DSCR is at least one
year >1
a. False
b. True
97. Given a project with the following parameters:
Year 0 1 2 3 4 Total 5 years
OCF 123 145 146 10 424
ICF -258 128 -130
TIPV -258 123 145 146 138 294
EPV -108 53.5 82 89.5 138 255
Interest 19.5 13 6.5 39
payment
Principal 50 50 50 150
payment
Given the project's DSCR in year 3 is
a. 2.92
b. 1.58
c. 2.58 146/(50 + 6.5)
d. Insufficient data to calculate
98. The project is capable of paying principal and interest if the DSCR in all years >0
a. Incorrect
b. Correct
99. Construction loan interest is recorded in the project's financing cash flows when it
arises during the construction period and is deferred.
a. Correct
b. Incorrect
100. The debt serviceability of an investment project is assessed based on:
a. Changes in the project's working capital
b. Annual after-tax profits of the project
c. Annual depreciation expenses of the project
d. Net operating cash flows of the project
101. Interest expenses during the project's life are recorded in cash outflows from
operations under the TIPV perspective. Is the above statement true or false?
a. Incorrect
b. True
102. Is the following statement true or false when dealing with interest incurred during
the project construction period: Included in the total investment.
a. True
b. False
103. Interest expense during the grace period is recorded in the cash outflow from
financing according to the TIPV perspective. Is the above statement true or false?
a. True
b. False
