Castillo, Angelica Elaine

Libiran, Jared Ruiz

Montemayor, Anna Carmela
Yacob, Judith Eliscia
Special project in Finance: Financial Projection for a Research Center
Name of Establishment: Ligero Research Center Bringing Knowledge at Hand

A. Establishment Objective
This facility aims to assist students and researchers in the National Capital Region in
their scientific endeavors by creating an encouraging research environment that keeps
abreast with the latest trends in technology and science.
B.Initial Capital
In order to establish the business, a capital worth P 100,000,000.00 is needed. The
capital will cover purchase of the lot, necessary equipment for the business,
construction of the building, payment for permits and salary of employees for the first
year.
C. Place of Establishment
The facility will be located at Mindanao Avenue Blk. 17, Lot 3, Sugar Subdivision,
Batasan Hills, in Quezon City. The place is located near schools and universities.
Lot area: 2400 sq.m.
TOTAL PRICE: P 84, 000,000.00
Expense for the first year: P476,943 (payment for loan) x 12 months = P5,723,316.00
D. Building
Specifications:
The establishment will be a 4-storey building with a total floor area of 8,000 square
meter and would worth P27, 000,000.00.
Expenditure for the buildings construction:
Average price of 600 m2 building (with labor)=P 2,000,000
8,000m2 / 600m2 = 13.333...
13.33... X P 2,000,000 = 26,666,667
TOTAL EXPENSE FOR THE BUILDING: P27,000,000.00
Floor Plan:
First Floor:

Second Floor:

Third Floor:

Fourth Floor:

E. Employees and their Yearly Salaries:

In order to handle the business, the head of the establishment must hire:

Employees Position

Estimated Yearly Salary

Manager

P369,664.00 / 12 = P30, 805.33

Secretary

P190,000.00 / 12 = P15,833.33

Receptionist

P147,729.00 / 12 = P12,310.75

Human Resource Manager

P483,231.00 / 12 = P 40,269.25

Accountant

P556,333.00 / 12 = P46,361.08

Auditor

P217,410.00 / 12 = P18, 117.50

Two Clerks

(171,600 X 2) = P 343,200.00 / 12 = P
28,600

Two Head Chemists

P400,000.00 / 12 = P 33,333.33

Two Lab Assistants

(P206,608 X 2) = P413,216.00 / 12 = P
34,434.67

Two Technicians

(P187,200 X 2) = P374,400.00 / 12 = P
31, 200.00

Further, the head of the establishment must enter into a contract with agencies handling
security and utility services.
Agency

Yearly Expense

Two Security Guards

P456,000.00 / 12 = P 38, 000.00

Four Utility Personnel

P738,000.00 / 12 = P 61,500.00

Total Yearly Expense for Salaries of Employees: P 13, 707,100.00

F.Employee Benefits expense

Employee Benefit

Amount per employee

(Per Month)

Total Yearly Expense

Social Security System

P340

P340 X 14 (number of
Employees) X12 =P57,120

Philhealth

P200

P200 X 14 X 12= P33,600

Pag ibig Fund

P200

P200 X 14 X 12= P33,600

Total Yearly expense for Employee Salarie= P124,320

G. Appliances, Fixture, and Furniture, Lab Apparatus, and Lab Chemicals
In order for the establishment to be a conducive environment for research, purchasing
the following pieces of equipment is also necessary:
Appliances,
Fixture,
Furniture

Quantity

Total Price

Small table for the P1,995

reception area

P5,985.00

Chair
for
reception

P46,800.00

P47,996.00

3-seater Gang Chair P5,000

10

P50,000.00

Study Tables

P1,000

50

P50,000.00

Computer units

P24,450

54

P1,320,300.00

Chairs
for
the P1,499
Computer units and
Study Tables

100

P149,900.00

Aircon Units

P28,000

16

P448,000.00

Laptop

P30,000

10

P300,000.00

Scanner

P3,399

P3,399.00

Cash Register

P10,000

P20,000.00

Television

Price Per unit

and

the P5,200
P11,999

Printer

P7200

P21,600.00

Speakers for the P100,000

Conference
hall
(Complete set)

P100,000.00

Theater seats

P6500

500

P3,250,000.00

Movable Speakers

P10,000

P30,000.00

Projectors

P12,000

11

P132,000.00

Photocopy Machine

P15,000

P30,000.00

Glass board

P3500

12

P42,000.00

Office
Desk, P8,000
Cubicles and chairs

15

P150,000.00

Fire extinguisher

P10,000

16

P160,000.00

Toilets

P3,500

24

P84,000.00

Cubicles

P3,000

12

P36,000.00

Sink with faucet

P3,000

P24,000.00

Total Expense for Appliances, Fixture, and Furniture: P6,501,980.00

The following laboratory apparatus and chemicals are also needed:
Apparatus

Price

Quantity

Total Price
(in Pesos)

Blood Pipette Shake 6 Placer

11,500.00

P 46,000.00

Centrifuge 12 Placer

25,000.00

P 50,000.00

Bunsen Burner

590

12

P 7080.00

Cover Slip

45

16

P 720.00

Glass Slide (50 items)

300

16

P 4800.00

Safety Goggles

43

60

P 2580.00

P207,660.20

Cole-Parmer

StableTemp 1,100.000

Economical
Gravity
Oven, 1.7 cu ft

Convection USD

Microwave Oven, 1200 Watts, 2.2 357.00 USD

Cu. Ft. (white),120V

P134,504.72

Funnel Glass

150

32

P 4,800.00

Alcohol Lamp

38

32

P 1,216.00

Measuring Cup

14

60

P 840.00

Mortar and Pestle

245

P 1,960.00

Petri Dish

95

32

P 3,040.00

Pipette Tip Rack

520

P 4,160.00

Stirring Rod

60

16

P 960.00

Test tube

10.5

400

P4,200.00

Vacutainer Tube

415

60

P24,900.00

Forcep Jar

455

32

P14,560.00

Magnifying Glass

80

20

P1,600.00

Mixing Bowl (Stainless)

75

40

P3,000.00

Straining Rack

300

20

P6,000.00

Test Tube Rack (50 tubes capacity)

520

P4,160.00

Tripod

145

P1,160.00

Specimen Bottle

10

400

P4,000.00

Digital Orbita Shaker

62,500

P250,000.00

Differential Blood Cell Counter 8 6,900.00

Keys

P27,600.00

Water Purifier

P232,745.96

(for extraction): Mojonnier Glass 87 USD

Extraction Flask, 25 mL; 1/PK

P16,389.24

Kimax

P51,239.92

586000-0023

2,471.00 USD

Soxhlet 272.00 USD

Extractor body; 300 mL; 1/PK

Friedrich condenser

P4,332.88

Electrothermal EMEA Electromantle 2,870.00 USD

3-Place Extraction Heater/Stirrer

P540,656.32

Soxhlet
systems

P9,2827.00

extraction

230.00 USD

glassware 493.00 USD

Soxhlet Flat bottom flask

60.50 USD

P11,397.32

Glass board

3500

P14,000.00

Laboratory Refrigerator

90,000

P630,000.00

Total expense for Apparatus: P 4, 810,179.12

Chemical Name

Acetic Acid, glacial

Acrylamide
Activated Charcoal
Aluminum nitrate

Ammonia solution (28%)

Ammonium sulfate

Benzene

Price (In
peso)

Quantity

Total Price

10l

(1.25 X
10,000) =
P12,500.00

5kg

(2.50 X
5,000) =
P12,500.00

1/g

5kg

(1X5,000) =
P 5,000.00

5/g

5kg

(5 X 5,000)=
P25,000.00

50l

(1 X
50,000)=
P50,000.00

10kg

(1 X
10,000)=
P10,000.00

10l

(1.5 X
10,000)=
P15,000.00

1.25/mL

2.50/g

1/mL

1/g

1.50 /mL

Benzidine

Boric Acid

Brass
4-bromophenol

Bromophenol Blue
Buffer additive for free chlorine
residual

n-butanol

Calcium chloride

Camphene

Carbinol

2/g

1.25/g

1.50/g

10kg

(2 X
20,000)=
P20,000.00

10kg

(1.25 X
10,000)=
P12,500.00

10kg

(1.5 X
10,000)=
P15,000.00

5kg

(7 X 5,000)=
P45,000.00

.
5 kg

(50 X
5,000)=
P250,000.00

10kg

(1 X
10,000)=
P10,000.00

10l

(1.5 X
10,000)=
P15,000.00

10kg

(5 X
10,000)=
P50,000.00

10l

(1 X
10,000)=
P10,000.00

10kg

(1 X
10,000)=
P10,000.00

10l

(1 X
10,000)=
P10,000.00

7/g

50/g

1/g

1.50/mL

5/g

1/mL

1/g

Carbon tetrachloride

1/mL

Celite 545

2.50/g

(2.5 X
10,000)=

charcoal, replacement

chloride, soluble

Chloroform

chromic acid

citric acid
copper oxide
copper oxide, copper form

dextrose, anhydrous

Ethanol

Ethylene Diamine

10kg

P25,000.00

10kg

(1.25 X
10,000)=
P12,500.00

10kg

(1 X
10,000)=
P10,000.00

10l

(2 X
10,000)=
P20,000.00

10kg

(1.2 X
10,000)=
P12,500.00

1.50/g

10kg

(1.5 X
10,000)=
P15,000.00

5/g

5kg

(5 X 5,000)=
P25,000.00

5/g

5kg

(5 X 5,000)=
P25,000.00

50kg

(1 X
10,000)=
P50,000.00

10kg

(1.5 X
10,000)=
P15,000.00

10l

(1.5 X
10,000)=
P15,000.00

10kg

(1 X
10,000)=
P10,000.00

1.25/g

1/g

2/mL

1.25/g

1/g

1.50/g

1.50/mL

Ferric Ammonium citrate

1/g

Folic Acid

30/g

(30 X

Formaldehyde solution (37%)

Gelatin for microbiology

Glycerin

Gum, Arabic

Hydrochloric Acid

Lactic Acid*
Lactose

Paraffin Wax

Lead nitrate

Potassium Chlorate
Potassium Nitrate

1/mL

2.25/g

5kg

5,000)=
P150,000.00

10l

(1 X
10,000)=
P10,000.00

10kg

(2.25 X
10,000)=
P22,500.00

10kg

(2.25 X
10,000)=
P22,500.00

10kg

(4 X
10,000)=
P40,000.00

10l

(1.5 X
10,000)=
P15,000.00

1/mL

10l

(1 X
10,000)=
P10,000.00

1/g

10kg

(1 X 10,000)=
P10,000.00

10kg

(1 X
10,000)=
P10,000.00

10kg

(3 X
10,000)=
P30,000.00

10kg

(1.5 X
10,000)=
P15,000.00

5kg

(7 X 5,000)=
P45,000.00

2.25/g

4/g

1.50/mL

1/g

3/g

1.50/g
7/g

Potassium permanganate
Propanol

Riboflavin
Saccharose
Silica Gel
Sodium acetate

Sodium Carbonate

Starch, soluble

Starch, potato
Sucrose
Sulfur Powder

Tin Metal

Urea

10kg

(2 X
10,000)=
P20,000.00

10l

(1 X 10,000)=
P10,000.00

10kg

(2.5 X
10,000)=
P25,000.00

10kg

(1 X 10,000)=
P10,000.00

1/g

10kg

(1 X 10,000)=
P10,000.00

1/g

10kg

(1 X 10,000)=
P10,000.00

10kg

(1.5 X
10,000)=
P15,000.00

10kg

(1.75 X
10,000)=
P17,500.00

10kg

(5 X
10,000)=
P50,000.00

10kg

(1 X 10,000)=
P10,000.00

10kg

(1 X 10,000)=
P10,000.00

10kg

(7 X
10,000)=
P70,000.00

10kg

(2 X
10,000)=
P20,000.00

2/g
1/mL

2.50/g
1/g

1.50/g

1.75/g

5/g
1/g
1/g

7/g

2/g

Zinc Metal

10kg

1.50/g

(1.5 X
10,000)=
P15,000.00

Approximate Total Yearly Expense for Chemicals: P1,217,500 x 12 = P 14,610,000

H. Maintenance
Service

Cost (Annual)

Electricity

P 500,000.00

Water

P 150,000.00

Television and Internet subscription P 420,000.00

(PLDT Power Plus Plan + Cignal)
EBSCO and Proquest Subscriptions

P 15,500.00

Total: P 1,385, 500

I. Business Registration
Process

Cost

Verification and Reservation of

Company Name in SEC

P 40.00

Notarization of Articles of incorporation

and treasurers affidavit

P 500.00

Registration of company in SEC and

receipt of TIN number

P 202, 980.00

Issuance of SEC certificate of

incorporation

P 500.00

Obtaining of business permit to operate

from BPLO

P 252,854.50

Buying of special books of account at

bookstore

P 400.00

Application of COR and TIN at the BIR

P 115.00

Payment of registration fee and

P 4,670.00

documentary stamp taxes

Printing of Receipts and Invoices

P 3,500.00

Obtaining of certified true copy of the

land title from the RD

P 160.00

Obtaining of lot map from geodetic

engineer

P 1,250.00

Obtaining of Barangay Clearance

P 300.00

Application for locational clearance at

CPDO

P 45.00

Notarization of locational clearance

application

P 50.00

Obtaining of locational clearance from

CPDO

P 5,400.00

Application and Obtaining of FSEC

from BFP

P 11,110.00

Application and Obtaining of building

permit from OBO

P 72,000

Obtaining of health certificate from the

CHO

P 400.00

Obtain the certificate of Occupancy

from the OBO

P 160,000.00

Obtain electricity connection from

MERALCO

P 564,490.00

Obtain water and sewage connection

from Maynilad

P 6,855.00

Preparation of notarized deed of sale

and other documents

P 1,500.00

Obtaining certified true copy of latest

tax declaration

P 728, 135.00

Obtaining of tax clearance certificate of

real property taxes

P 65.00

Obtaining certificate

P 115.00

Pay documentary stamp tax and

creditable withholding tax

P 1,665,000.00

Pay the transfer tax at the CTO

P 832,500.00

Secure registration with the Register of

Deeds (RD)

P 456,103.00

Total Expense for Registration: P 4,971,037.00

J. Target Market
Being a research and an educational establishment, this facility is intended for high
school, undergraduate and graduate students, and other people who are in need of a
conducive place for learning and assistance in their research projects.
K. Products, Rentals and Services Offered
Products:
PRODUCT

PRICE

Cat Cadaver

P1,000

Frog

P50

Chemical/s

Price of the chemicals listed on part F,

fourth table will be multiplied by 2

Rentals:
Facility

Price (per hour)

Conference hall

P15,000 (Basis: BGPOP rentals)

Rooftop

P8,000 (Basis: Events place price)

Laboratory (use of several lab apparatus

included)

P400 on weekdays P500 on Saturdays

and Sundays (Basis:
http://www.upenn.edu/computing/isc/traini
ng/lab/)

Laboratory (use of all lab apparatus )

P1,000

Computer unit (use of EBSCO and

Proquest included)

P25 (Basis typical comp shop price)

Discussion Room

P100

Services
Service/ Test

Price

Biological Tests:
Test on veterinary, pharmaceutical, and
biological products:
Efficacy tests on biocides
Tests on cosmetics, perfumes and
essential oils
Microbiological tests on foods and
beverages
Microbiological tests on packaging
materials
microbiological tests on non-food/nonpharmaceutical products
Microbial test of waters, including
effluents
Chemical tests:
Inorganic Chemistry (Waters;
Miscellaneous materials and products)
Organic Chemistry (Foods; Agricultural
Products and Materials)

P6,000 (base price but the price would

increase depending on the materials used
within the discretion of the lab employee)

P4,000 (base price but would increase

depending on the materials used within
the discretion of the lab employee)

L. SWOT Analysis
STRENGTHS
- Unlike other research facilities, this
establishment offers a sophisticated
and high class learning area.
-

Some of the laboratory apparatus

WEAKNESSES
- The business is somehow seasonal,
especially during vacation months
- The place of establishment is prone
to floods

would not be found in most typical

laboratories

- The facilities, especially the

laboratory and the computer area, is
high maintenance

The place is spacious.

- The establishment will be open for

weekends for those who need to study
or are in need of a specimen for the
following week

- Rarity and the expensiveness of

some of the laboratory apparatus. The
price would be steep if the apparatus
were to be repaired

- Services offered by the business is

a necessity especially for students
OPPORTUNITIES
ASEAN Integration is presumed to be
beneficial as it would bring additional
clients.
Low number of competitors in the area

THREATS
- The possible presence of new
competitors throughout the area
- The schools and universities where
the most of the target markets study
also have laboratories
The introduction of new
curriculum due to the K-12 program will
cause a decrease in the number of
clients

M. Marketing Strategies
Advertisement type

Cost

Flyers (1000 copies)

P1000 (will be distributed before the

first month of opening)

Brochures (1000 copies)

P2000 (will be distributed before the

first month of opening)

Partnerships with schools

Free

Social networking site advertisements

Free

Total Expense for Marketing: P 3,000

N. INCOME ASSUMPTIONS

Income from RENTALS:

1.
Conference Hall
Average usage: 5x a month
P 15, 000 x 5 times per month x 5 hours per day = P 375, 000 x 12 months = P 4, 500,
000
2.
Events Place (Rooftop)
Average usage: 10x a month
P 8,000 x 10 times per month x 10 hours per day = 800,000 x 12 months = P 9, 600,
000
3.
Laboratory (not all equipment)
Average usage: 3x a day, 72x a month
P 450 x 3 times a month x 3 hours a day x 24 days = P 97, 200 x 12 months = P 1, 116,
000
P 400 x 3 times x 3 hours per day x 16 days (weekdays) = P 19, 200 x 12 months = P
230,400
P500 x 3 times x 3 hours per day x 8 days (weekends) = P 12, 000 x 12 months = P
144, 000
4.
Laboratory (all equipment)
Average use: 3x a day, 72x a month
P 1,000 x 3 times x 3 hours per day x 24 days = P 216, 000 x 12 months = P 2, 592,
000
5. Discussion Rooms
P 150 x 5 hours per day x 26 days a month = P 19, 500 x 12 months = P 234,000
6. Computer

Income from sold products

1.
Frogs
35 frogs per day x 16 days x P 50 = P 28, 000 x 12 months = P 336, 000
35 frogs per day x 24 days x P50 = P 42, 000 x 12 months = P 504, 000
2.
Frozen Cat specimen
5 cats per day x 24 days x P1, 000 = P 120, 000 x 12 months = P 1, 440, 000
3.
Formalin
P 200, 000
4.
Ethanol
P 300, 000
5.Sulfur powder
P 200, 000
6. Ammonia
P 200, 000
7. Charcoal
P 200, 000
8. Replaced Charcoal
P 250, 000
9. Gelatin
P 450, 000
10. Starch
P 350, 000

SUBTOTAL FOR PRODUCTS, AND RENTALS:

P 20, 672, 000
SERVICES
Month

Expected number of customers who will

avail the services

January

20

February

20

March

15

April

May

June

July

10

August

35

September

40

October

45

November

45

December

50

Total estimated yearly customers: 325

YEARLY GROWTH
YEAR 1: P 20, 438, 000
YEAR 2: P 20, 499, 314
YEAR 3: P 21, 524, 279.70
YEAR 4: P 23, 270, 222.08
YEAR 5: P 25, 597, 244.29
An owner's compensation should not be lower than his distribution. The loan from BPI is P 84,
000, 000, the total capital needed for the business is P 100, 000, 000. The capital less the loan
is divided to 4 parts for each shareholder. The part is equal to P 340, 000. Thus, we derived that
it is proper to give the owner an amount of P 550, 000, the average salary of a Filipino in the
upper class, an amount more than their distributionsh in the capital.