IV- Financial Aspects

1. Total Project Cost

The 300-hectare Palm Oil Plantation to be develop in Las Nieves, Agusan del Norte
Ill cost about P62,158,000.00. Breakdown of the costs are as follows:
Sources of Financing
The project will be funded thru a loan from Development Bank of the Phil.
(DBP) of about P50,000,000.00 payable in ten (10) years inclusive of four years grace
period at 10% per annum and the balance of P12,158,000.00 will be financed by the
stockholders as equity.
Financial Projection
Results of the ten-year financial projection, based the most current cost
estimates, showed project viability. Below presents its financial analysis:
a. Return on Investment (ROI)
Average Annual Income after Tax
Plus Interest for seven years
P15,780,870.00
P62,158,000.00
Return on Investment ROI
25%
VVVVVVV
b. Cash Payback Period
The cash pay back period, when the total investment of P62,158,000.00,will
be recovered, is about five years.