To maximize the 40 x 50 meter land area, the engineers will erect the 20 x 30 meter proposed two storey building, leaving five meters at both sides and 18 meters fronting thestreet. Only two meters will be left at the back of the building. This will ventilate theestablishment.
The Bataan Builders will construct the building. This construction company will usemodern building equipment like a cement mixer, caterpillar, automatic digging drill, andother state of the art construction materials.
4. Project Cost4.1 The Land and the Building
This project will cost about P 45,000,000.00 which is roughly broken into the following:Cost of 2,000 meter lot – P 40,000,000.00Cost of 2 storey building – P 4,000,000.00Accessories and Equipments – P 1,000,000.00Total Cost –
The 45 million pesos worth of land is the biggest of the capital investment but it is worthit because unlike the other expenses, the land value will appreciate through the years. Thecontract with the Bataan Builders for the proposed two-storey building is P 4,000,000.This includes materials and labor. With the five-month paying scheme, Cindy will pay P800,000 every month until the last month. The food center will need P 1,000,000 for theimported accessories like tables, chairs and other needs.
The food center will pay the current P 1,000,000 Cindy franchise.
4.3 Sources of Financing
The proprietor will put in P 5,000,000. The remaining P 40,000,000 will be borrowedfrom the bank.
5. Business Operation5.1 Revenues
With 50 thousand monthly net income target from about five thousand daily customers,the proposed branch projects the following net income by month and years: