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TABL OF CONTENTS ACKNOWLEDGEMENT i TABLE OF CONTENTS ii LIST OF TABLES iv LIST OF FIGURES v LIST OF FIGURE vii INTRODUCTION 1.Urgency of the thesis (Rationale for studying) .1 Research objectives .2 Research questions Research scope .2 Research methodology 5.1 Research procedure 5.2 Data collection methods .4 5.3 Data analysis CHAPTER RATIONALE FOR EFFECTIVE FINANCIAL ANALYSIS .5 OF THE PROJECT 1.1 Investment project 1.1.1 The concept of investment project 1.1.2 Fundamental of project 1.1.3 The cycle of investment project 18 1.1.4 Classification of investment project 23 1.2 Evaluation of investment project 27 1.2.1 Evaluation principle of investment project .27 1.2.2 Purpose of evaluating investment project 28 i 1.2.3 Evaluation content of investment project .29 1.3 The indicators reflecting the result of project .29 1.3.1 Net present value (NPV) 29 c Decision making based on NPV .31 1.3.2 Internal Rate of Return (IRR) 32 a Definition 32 1.3.3 Payback period of PB .34 1.4 Profitability ratio PI 35 1.4.1 Concept .35 1.4.2 Formula 35 1.4.3 Decision making based on profitability indicator 36 FINANCIAL EFFICIENCY ANALYSIS OF THE PROJECT OF BUSINESS AND PRODUCTION OF WOOD PELLETS .37 2.1 About Manh Bac Son Trading and Technology Company Limited and Project of production and trading of wood pellets 37 2.1.1 An overview of the process of formation and development of Manh Bac Son Company 37 2.1.2 Organizational structure of Manh Bac Son Trading and Technology Company Limited 38 2.1.3 Basic functions and tasks of management departments 38 2.2 Project of production of wood pellets 43 2.2.1 Overview, context of the project .43 2.2.2 The necessity of the project 44 2.2.3 Scale and solutions of implementation 45 2.2.4 Assessment of environmental impact .56 2.2.5 WOST analysis, market strategy 59 2.2.6 Calculate the total of project investment .60 ii 2.2.7 Capital for project implementation 67 2.2.8 Calculate the project cost 70 2.3 Financial efficiency analysis of the project of wood pellet production 76 2.3.1 Net current value (NPV) of the project 76 2.3.2 Rate of return IRR 77 2.3.3 The payback period of the project 77 CHAPTER 81 CONCLUSION AND SOLUTIONS 81 3.1 Orientation of the company to project list 81 3.2 Selection or rejection of investment project 82 3.3 Solutions 82 CONCLUSIONS 84 LIST OF REFERENCES 85 iii LIST OF TABLES LIST OF FIGURE vii INTRODUCTION 1.Urgency of the thesis (Rationale for studying) .1 Research objectives .2 Research questions Research scope .2 Research methodology 5.1 Research procedure 5.2 Data collection methods .4 5.3 Data analysis CHAPTER RATIONALE FOR EFFECTIVE FINANCIAL ANALYSIS .5 OF THE PROJECT 1.1 Investment project 1.1.1 The concept of investment project 1.1.2 Fundamental of project 1.1.3 The cycle of investment project 18 1.1.4 Classification of investment project 23 1.2 Evaluation of investment project 27 1.2.1 Evaluation principle of investment project .27 1.2.2 Purpose of evaluating investment project 28 1.2.3 Evaluation content of investment project .29 1.3 The indicators reflecting the result of project .29 iv 1.3.1 Net present value (NPV) 29 c Decision making based on NPV .31 1.3.2 Internal Rate of Return (IRR) 32 a Definition 32 1.3.3 Payback period of PB .34 1.4 Profitability ratio PI 35 1.4.1 Concept .35 1.4.2 Formula 35 1.4.3 Decision making based on profitability indicator 36 FINANCIAL EFFICIENCY ANALYSIS OF THE PROJECT OF BUSINESS AND PRODUCTION OF WOOD PELLETS .37 2.1 About Manh Bac Son Trading and Technology Company Limited and Project of production and trading of wood pellets 37 2.1.1 An overview of the process of formation and development of Manh Bac Son Company 37 2.1.2 Organizational structure of Manh Bac Son Trading and Technology Company Limited 38 2.1.3 Basic functions and tasks of management departments 38 2.2 Project of production of wood pellets 43 2.2.1 Overview, context of the project .43 2.2.2 The necessity of the project 44 2.2.3 Scale and solutions of implementation 45 2.2.4 Assessment of environmental impact .56 2.2.5 WOST analysis, market strategy 59 2.2.6 Calculate the total of project investment .60 2.2.7 Capital for project implementation 67 2.2.8 Calculate the project cost 70 v 2.3 Financial efficiency analysis of the project of wood pellet production 76 2.3.1 Net current value (NPV) of the project 76 2.3.2 Rate of return IRR 77 2.3.3 The payback period of the project 77 CHAPTER 81 CONCLUSION AND SOLUTIONS 81 3.1 Orientation of the company to project list 81 3.2 Selection or rejection of investment project 82 3.3 Solutions 82 CONCLUSIONS 84 LIST OF REFERENCES 85 vi LIST OF FIGURE LIST OF FIGURE vii INTRODUCTION 1.Urgency of the thesis (Rationale for studying) .1 Research objectives .2 Research questions Research scope .2 Research methodology 5.1 Research procedure 5.2 Data collection methods .4 5.3 Data analysis CHAPTER RATIONALE FOR EFFECTIVE FINANCIAL ANALYSIS .5 OF THE PROJECT 1.1 Investment project 1.1.1 The concept of investment project 1.1.2 Fundamental of project 1.1.3 The cycle of investment project 18 1.1.4 Classification of investment project 23 1.2 Evaluation of investment project 27 1.2.1 Evaluation principle of investment project .27 1.2.2 Purpose of evaluating investment project 28 1.2.3 Evaluation content of investment project .29 1.3 The indicators reflecting the result of project .29 vii 1.3.1 Net present value (NPV) 29 c Decision making based on NPV .31 Figure 1-3: Decision making based on NPV .32 1.3.2 Internal Rate of Return (IRR) 32 a Definition 32 1.3.3 Payback period of PB .34 1.4 Profitability ratio PI 35 1.4.1 Concept .35 1.4.2 Formula 35 1.4.3 Decision making based on profitability indicator 36 FINANCIAL EFFICIENCY ANALYSIS OF THE PROJECT OF BUSINESS AND PRODUCTION OF WOOD PELLETS .37 2.1 About Manh Bac Son Trading and Technology Company Limited and Project of production and trading of wood pellets 37 2.1.1 An overview of the process of formation and development of Manh Bac Son Company 37 2.1.2 Organizational structure of Manh Bac Son Trading and Technology Company Limited 38 2.1.3 Basic functions and tasks of management departments 38 2.2 Project of production of wood pellets 43 2.2.1 Overview, context of the project .43 2.2.2 The necessity of the project 44 2.2.3 Scale and solutions of implementation 45 2.2.4 Assessment of environmental impact .56 2.2.5 WOST analysis, market strategy 59 2.2.6 Calculate the total of project investment .60 2.2.7 Capital for project implementation 67 2.2.8 Calculate the project cost 70 viii 2.3 Financial efficiency analysis of the project of wood pellet production 76 2.3.1 Net current value (NPV) of the project 76 2.3.2 Rate of return IRR 77 2.3.3 The payback period of the project 77 CHAPTER 81 CONCLUSION AND SOLUTIONS 81 3.1 Orientation of the company to project list 81 3.2 Selection or rejection of investment project 82 3.3 Solutions 82 CONCLUSIONS 84 LIST OF REFERENCES 85 ix Le Van Manh - IeMBA.B03 INTRODUCTION Urgency of the thesis (Rationale for studying) Currently, agricultural residues are usually handled by households with method of burning That causes environmental pollution and highest fire risk in dry season The uncontrolled burning of straw also obstructs vision, makes motorbike and car be on fire and explosion while being on the road On the other hand, the current demand for fuel for households (used for cooking), coal, heavy oil furnace for factories as well as heating purposes in cold climate areas such as Eastern Europe is increasing dramatically However, the use of fuels which are mainly coal, oil, natural gas and electricity with high increased prices, natural resources are more and more exhausted and the specifically important thing is that this will pollute the environmental Straw was used as popular fuel in rural areas many years ago, but due to the process of social development it is now no longer be used as fuel So in order to replace expensive, polluted and exhausted fuels, alternative fuel will be needed Wood pellet from straw are an alternative fuel for the above fuels which help both saving expenses and solving the problem of environmental pollution Therefore, the birth of wood pellet from straw converges many advantages and has been tested extensively for using in developed countries Compared to coal, the heat of wood pellet reaches 70 % but costs only 45 %, and compared to DO oil, the heat of wood pellet reaches 78 % but only costs 30%, each 2kg of wood pellets equals to 1kg of DO oil; compared with the current price of electricity, the usage of wood pellets also saves a lot more expenses Thus, with the same level of releasing energy, using wood pellets will save 50 % cost, moreover, fuel pellet causes less pollution than coal as pellet does not include sulfur like coal For each 1000kg wood pellets after burning calories, the remaining will be 10 - 15kg clean ash The amount of waste (ash after burning) is biomass ash which is used as fertilizer, farm fertilizer, compost which not affect the Le Van Manh - IeMBA.B03 b Operating expenses Operating expenses include the following expenses: * Advertising costs Advertising is very important to the project, because wood pellets products are relatively new on the market, this is the first stage of the product development cycle, there should be a web site, product introduction fair, flyer printing, market research, marketing and dealer development Therefore, the cost of advertising is huge, estimated at about 200,000,000 dong for the first year, the next years it will increase by 10%, partly because advertising needs to be maintained, other part is that the plant capacity increases so it needs more and more advertising * Maintenance cost of machinery and equipment Estimated cost of equipment maintenance will be equal to 2% of cost of machinery and equipment purchase, and in the following years it will increase to 3% * The cost of machinery and equipment insurance Insurance costs for machinery and equipment used equals to 1%/year of newly purchased machinery and equipment, and this cost will increase to 2%/year in the following years * Shipping costs Including transport costs of inputs and goods shipping, this cost is estimated at 3% of total revenue/year * The cost of social welfare funds, health insurance, health insurance, unemployment allowance, reward etc According to regulation, this costs is about 25% of wage cost, this cost in accordance with regulation includes 21% for Social, Health insurance and 4% for rewards and allowances estimated at 921,294,000 dong/year * Cost of stationery, phone 71 Le Van Manh - IeMBA.B03 Operation of the plant needs operational means, accounting books, storage, communication, so the plant has this additional cost Each year this cost accounts for 0.5% of total revenue * Cost of materials and electrical energy According to calculations, to produce ton of finished products, 1.2 tons of input material, plant capacity increases by 10%/year in the next years, price of input raw materials will increase by 8%/year (expected) Table of input raw materials costs Table 2-10: Table of input raw materials costs Year Items Cost of input material (rice straw, rice husk, sawdust) Rice straw, rice husk, sawdust (tons) Unit price / ton Electricity Cost Power (Kw) Unit cost / Kw Total cost of materials 2013 2,014 2,015 2,017 4,492,800 5,337,446 6,340,886 7,532,973 8,949,172 10,873 11,960 13,156 500 540 583 1,517,184 1,802,415 2,141,269 1,152,000 1,267,200 1,393,920 1.32 1.42 1.54 630 2,543,827 1,533,312 1.66 680 3,022,066 1,686,643 1.79 6,009,984 7,139,861 8,482,155 10,076,800 11,971,238 8,986 2,016 9,884 72 Le Van Manh - IeMBA.B03 Retail price of living electricity Table 2-11: Retail price of living electricity No Use amount of one household innguyên liệu month 50 kWh (poor, low income) For kWh from 0-100 For kWh from 101- 150 For kWh from 151-200 For kWh from 201- 300 For kWh from 301- 400 For kWh from 401 up Present price 993 1,242 1,369 1,734 1,877 2,008 2,060 Price from 1/7 993 1,284 1,457 1,848 1,997 2,137 2,192 Retail price of electricity for production sectors: No Subjects applied electricity prices Present price Price from 1/7 Voltage of 110 kV or higher a) Normal hours 1,102 1,158 b) Low load hours 683 718 c) Peak hours 1,970 2,074 Voltage from 22 kV to under 110 kV a) Normal hours 1,128 1,184 b) Low load hours 710 746 c) Peak hours 2,049 2,156 Voltages from kV to under 22 kV a) Normal hours 1,164 1,225 b) Low load hours 727 773 c) Peak hours 2,119 2,224 Voltage below 6kV a) Normal hours 1,216 1,278 b) Low load hours 767 814 c) Peak hours 2,185 2,306 Customers who purchase electricity at voltage of 20kV are applied prices at voltage of from 22kV to under 110kV Electricity retail price to production sector: No Voltage From 22 kV or higher 73 Current Price from price 1/7 Le Van Manh - IeMBA.B03 a) Normal hours b) Low load hours c) Peak hours From 6kV to below 22kV a) Normal hours b) Low load hours c) Peak hours Less than 6kV a) Normal hours b) Low load hours c) Peak hours 1.808 1.022 3.117 1.909 1.088 3.279 1.939 1.153 3.226 2.046 1.225 3.388 1.965 2.074 1.205 1.279 3.369 3.539 (Source: Ministry of Industry and Trade) * Other expenses This expense accounts for 5% of project costs Summary table of operational expenses of the project 74 Le Van Manh - IeMBA.B03 Table 2-12: Summary table of operational expenses of the project Year Item Advertising expenses Maintenance cost of machinery and equipment Insurance cost Transport cost Welfare fund, unemployment insurance, subsidies, reward Stationery, telephone Cost of materials Other expenses Total 2013 2014 2015 2016 2017 200,000 220,000 242,000 266,200 292,820 69,124 103,686 103,686 103,686 103,686 34,562 336,960 69,124 370,656 69,124 407,722 69,124 448,494 69,124 493,343 921,294 948,933 977,401 1,006,723 1,036,925 56,160 61,776 67,954 74,749 82,224 6,009,984 381,404 8,009,488 7,139,861 445,702 9,359,738 8,482,155 517,502 10,867,543 10,076,800 602,289 12,648,064 11,971,238 702,468 14,751,828 Cost per one product Table 2-13: Cost per one product Unit: 1,000 VND Year 2013 Items Cost of materials 6,009,984 Employee wage 3,992,274 Equipment 691.2 depreciation Direct production 10,002,94 costs Manufactured products 7,488 Cost of products 1,336 Depreciation calculation table 2014 7,139,861 4,391,501 1,105.9 11,532,4 68 8,23 1,400 2015 2016 2017 8,482,155 10,076,800 11,971,238 4,830,652 5,313,717 5,845,088 656.6 414.7 13,313,46 15,390,93 17,816,32 10,96 9,060 9,967 1,469 1,544 1,625 Table 2-14: Depreciation calculation table Year 75 Le Van Manh - IeMBA.B03 Depreciation 5-year MACRS Equipment Depreciation rate Depreciation years MACRS-31factory Depreciation rate Depreciation Total annual asset depreciation 20% 32% 691,240 1,105,984 19% 656,678 12% 414,744 1.5% 118,800 3% 237,600 3% 237,600 3% 237,600 810,040 1,343,584 894,278 652,344 According to market assessment and analysis currently the product is sold domestically at 2,000 dong/kg and 3,000 dong/kg for export 2.3 Financial efficiency analysis of the project of wood pellet production 2.3.1 Net current value (NPV) of the project Table 2-15: Net current value (NPV) of the project Unit: 1000 VND Initial cash flow Plant and equipment (14,076,200) Increased working capital Initial cash flow (2,016,344) (16,092,544 ) Operational cash flow Revenue Variable costs Fixed general 14,976,000 16,473,600 8,009,488 9,359,738 18,120,960 19,933,056 10,867,543 12,648,064 810,040 6,156,472 1,539,118 4,617,354 894,278 6,359,139 1,589,785 4,769,354 expenses excluding depreciation Depreciation of plant and equipment EBIT = EBT 25% Tax Net Profit NI Ending cash flow 76 1,343,584 5,770,278 1,442,570 4,327,709 652,344 6,632,648 1,658,162 4,974,486 Le Van Manh - IeMBA.B03 Recovery of working capital Net liquidation value Ending cash flow (16,092,544) 4,617,354 4,327,709 4,769,354 2,001,634 8,106,172 10,107,806 15,082,292 NPV with capital costs of 12% IRR % PI Net liquidation value Primary cost Liquidation value Price written in book Profit and loss upon 4,469,267 22% 1,28 Equipment 3,456,200 1,382,480 587,554 Plant 10,620,000 5,841,000 9,788,400 liquidation 794,926 Liquidation tax 222,579 Net liquidation value 1,159,901 Result of analysis shows that NPV = 4,469,267 (3,947,400) (1,105,272) 6,946,272 8,106,173 > (with the price of domestic products) 2.3.2 Rate of return IRR As calculated from the table above it shows IRR = 22% (Calculation based on excel) 2.3.3 The payback period of the project Table 2-16: The payback period of the project Year Expected cash Accumulated flow cash flow (16,092,544) (16,092,544) 4,617,354 (11,475,190) 4,327,709 (7,147,482) 4,769,354 (2,378,127) 77 Le Van Manh - IeMBA.B03 4,974,486 2,596,359 PB = +2,363,417/4,974,486 = years months Thus, the project payback period is within years months 2.3.4 Rate of return of the project (PI) According to the calculation results in the table we see PI = 1.28 > 2.3.5 Economic – Financial efficiency a Economic assumptions and the basis of calculation Assumed parameters used to calculate the economic efficiency of the project on the basis of calculations of the implemented projects, documents relating to the sale price, materials provided from the investor, namely as follows: - Equity 70%, loan 30% - Operational duration of the project is 15 years and it goes into operation from October 2013 - Systems of equipment and machinery to be invested to ensure good operation of the project - Project revenue earned from the wood pellet products sold in domestic market and for export partly - Depreciation cost of fixed assets applies MACRS depreciation method under chapter IX spreadsheet - Provisional interest rate for VND is 12%/year - Corporate income tax of 25% b Revenue from the project Based on the plant capacity and business plan of the project, as well as needs of domestic and export markets, the company provisionally calculate project revenue as follows: The plant operates with a maximum capacity of 5tons/h, but in the first year as the new plant does not have operating technique, the market is not large, so the 78 Le Van Manh - IeMBA.B03 initial capacity of the plant is 3tons/hour Expectations after years of the plant is stable operation with a capacity of about 4.4 to 4.5 tons/h For following years each year it increases 10% per year, so we have the capacity table as follows: Table 2-17: Capacity per year Year Capacity ton/year 7,488 8,237 9,060 9,967 10,963 Wood pellets are common products used as industrial, civil fuel, for heating and bedding farm etc., are preferred, sales of products are from two sources of export and domestic sales Proportion of domestic sales is primary so we temporarily calculate revenue primarily from the domestic sale Sales = annual capacity * cost Assuming that production costs in the first year is 2000 and stable within years (no significant increase) Table 2-18: Revenue Unit: 1,000 VND Year 2014 7,488 749 6,739 2,000 Capacity ton/year Inventory volume Sales volume Unit price Revenue 2015 2016 2017 8,986 10,783 12,939 899 1,078 1,294 8,087 9,704 11,645 2,000 2,000 2,000 16,174,08 19,408,89 23,290,67 13,478,400 2018 15,527 1,553 13,974 2,000 27,948,810 Project income report Table -19: Project income report Year Item Revenue Total cost Land lease cost Production and sales 2014 13,478 ,400 10,761, 500 180, 000 6,009, 2015 16,174 ,080 13,100, 734 180, 000 7,139, 79 2016 19,408 ,896 15,415 ,722 180, 000 8,482, 2017 23,290, 675 17,044 ,126 180, 000 10,076, 2018 27,948, 810 19,228, 002 180, 000 11,971, Le Van Manh - IeMBA.B03 cost Depreciation expenses 894 Interest expense Employee wages Profit before tax Corporate income tax (25%) Profit after tax 579, 332 3,992, 274 2,716, 900 679, 225 2,037, 675 861 810, 040 579, 332 4,391, 501 3,073, 346 768, 337 2,305 ,010 155 1,343, 584 579, 332 4,830, 652 3,993, 174 998, 293 2,994 ,880 800 894, 278 579, 332 5,313, 717 6,246 ,549 1,561, 637 4,684 ,912 238 652, 344 579, 332 5,845, 088 8,720, 808 2,180, 202 6,540, 606 Project revenue increases each year due to increasing operating capacity of the plant, search for long-term consumption market Factory set reasonable production plan so that the plant can operate stably and effective in a long period along with the project Summary table of the project targets Table 2-20: Summary table of the project targets No Target Total investment Net present value NPV Internal rate of return IRR% Payback period Rate of return of the project (PI) Assessment Result 16,092,544,000 4,469,267 22% năm tháng 1,28 Effective The planning process, analysis and calculation of above financial indicators show the project will bring profit to investors, yielding is also higher than expectations of investors, and the payback period is short 80 Le Van Manh - IeMBA.B03 CHAPTER CONCLUSION AND SOLUTIONS 3.1 Orientation of the company to project list In the coming time to create value for the company, shareholders, the project should focus on the following issues a Orientation in organizing production - Develop business plans to maximize the design capacity of the plant - Be proactive in input material to stabilize the material to ensure adequate supply of raw materials to the continuous factory operation - Search supply of particle board, and sawdust to ensure materials, accumulate sufficient material - Train technical workers to professionally operate line to create stability for the operation of the plant and create high-quality products - Improve fire safety, train and rehearse fire and explosion situations to be proactive in fire - Storage of raw materials and finished products to ensure quality is not in humidity which reduces product quality b Orientation in the business organizations to promote products on the market - Implementation of the Marketing and product promotion to consumers, manufacture organization of dedicated kitchen to serve the needs of consumers to promote effectiveness of the product - Marketing to factories which use steam boiler systems, drying systems that use coal as fuel and FO, DO fuel, this market is promising because of large demand - Trade promotion in cold countries in order to sell products for export abroad, this market will bring higher profits - Develop strong communication and promote the products to the market in the shortest possible time 81 Le Van Manh - IeMBA.B03 - When the product is in the market place it is necessary to study plan of new project construction, increasing the capacity of existing plants - This product is in the first phase so it is necessary to implement quickly and strongly to dominate the market, as the market has accepted the use wood pellets instead of other alternative product, it is necessary to produce in mass to dominate the market 3.2 Selection or rejection of investment project Project of manufacturing factory for wood pellets has many positive impacts on socio-economic development, contributing to the growth development of the national economy in general and the region in particular State and locality have budget revenues from VAT, corporate income tax, export tax In addition, the project also solves the matter of using large quantities of agricultural and forestry waste, protect the environment, create jobs for workers with high incomes For investors investment in the project will bring high returns from the project, create a reputation for the company and bring firm market Through financial indicators such as NPV = 4,469,267, internal rate of return IRR = 40%, payback period is years months including construction period This shows that the project will bring high profits for investor, greater confidence when the ability to pay debt is high and rate of returns is high In addition, the project will contribute to protection of the environment, contribute to the state budget and create jobs for local workers 3.3 Solutions a Calling for investment capital for the project - The project is executed only when succeeding in calling for the necessary capital to invest in the project, in the context the world and domestic economies are facing difficulties, capital in businesses (shareholders) is very scarce, shareholders not risk in long-term capital investment The mobilization of funds for the 82 Le Van Manh - IeMBA.B03 project is very difficult, it is necessary to a better job of project planning, project evaluation and how to make the project really compelling to shareholders - Need to obtain an investment license in order to be able to convince shareholders as well as commercial banks so that the project can be implemented successfully - Take advantage of all incentives of local authorities, levels of government, natural resources and environmental department to highlight the necessity, prominence and financial performance of the project in order to attract capital - This is a new project in terms of both products and new investment so calling for investment from shareholders as well as banks is very difficult, requires specific strategies b Other solutions - During construction of the plant it is necessary to perform all operations simultaneously to shorten the construction and installation time, put their project into production, this is one of the important factor to increase financial efficiency indicators of the project - Increase revenue, quick market penetration so that project NPV is large - Save fuel, electricity, production costs, particularly transport costs to reduce cost per unit of product 83 Le Van Manh - IeMBA.B03 CONCLUSIONS For the project - The project of wood pellets production on environmental perspective or analysis of financial performance the investment in the project is entirely possible to bring benefit to society, investor, shareholders etc - In case of project investment, carry out simultaneously and find solutions so that many projects can be promoted efficiently For the thesis and personal research student - During the learning process the research student has accumulated a lot of useful knowledge across 12 subjects, has applied the knowledge learned in business practice, and promote efficiently somewhat ` - During the thesis writing, despite a lot of efforts, study and research, hard working, along with the help of professors and doctorates and friends, especially the direct advisor, Dr Pham Long, but with limited time, experience with no analyzing experience so the dissertation writing process was perplexed with inevitable errors I look forward to comments of teachers and friends so that the project can go to reality, the thesis may be further improved Once again, sincerely thanks to teachers and classmates, and advisor, Dr Pham Long 84 Le Van Manh - IeMBA.B03 LIST OF REFERENCES Data and Book of Manh Bac Son Trading and Technology Company Limited Data sheet of wood pellets production project Syllabus: Evaluation of investment projects - the National Political Publishing House Syllabus: Fundamentals of financial management – Vietnam Publisher of education GSO website www.gso.gov.vn Website of Appraisal Joint Stock Company www.thamdinhgia.org 85 ... current price of electricity, the usage of wood pellets also saves a lot more expenses Thus, with the same level of releasing energy, using wood pellets will save 50 % cost, moreover, fuel pellet... complete the above task, the evaluation staff needs to remember the fundamental of the investment project In principle, the investment project often include content such as: (1) Objectives and need... investment management and development of the Decree No 52/1999/ND-CP dated 08-07-1999, the concept of investment projects has been generalized and this concept hass been stated in Vietnam investment