A BUSINESS PLAN

“BANANA PRODUCTION PROJECT”

Brgy. Sumile, Butuan City

A BUSINESS PLAN
OF ECLEO FARM

BANANA PRODUCTION (LAKATAN) PROJECT

Name of Proponent: Ecleo Farm Contact Person: Mr. Amor V. Ecleo

Home Address: Brgy. Sumile, Butuan City Contact Number: 09102289248
Business Address: Brgy. Sumile, Butuan City

ECLEO FARM
BANANA PRODUCTION PROJECT
Total Project Cost
Particulars Cost LBP Proponent Equity
Enterprise Cost      
130,000.0 130,000.0
Land Development 0 0  
200,000.0 200,000.0
Procurement of Planting Materials 0 0  
72,500. 72,500.
Procurement of Farm Inputs 00 00  
272,870.2 210,960.0
Operational Expenses ( 3 Months) 1 0 61,910.21
       
675,370.2 613,460.0
Subtotal 1 0 61,910.21
71,540. 71,540.
Procurement of Site Development Materials 00 00  
71,540. 71,540.
Subtotal 00 00 -
315,000.0 315,000.0
Procurement of Hauling Truck
0 0  

Subtotal 315,000.0 315,000.0

0 0 -
Existing Asset-Agricultural Lot 500,000.00    
Subtotal 500,000.00   500,000.00
1,561,910.2 1,000,000.0
Total Project Cost 1 0 561,910.21
 A BUSINESS PLAN
“BANANA PRODUCTION PROJECT”
Brgy. Sumile, Butuan City

Table of Contents

Chapter 1. Enterprise Description

1.1 Rationale
1.2 Ecleo Farm
1.3 Goals and Objectives
1.4 Enterprise Location and Customers

Chapter 2. Product and Services

2.1 Products Sold
2.2 Capital Equipment

Chapter 3. Market Analysis Section

3.1 Customers and Market Area

3.2 Market Demand, Potential and Volume
3.3 Sales Potential and Volume
Chapter 4. Competition
4.1 Competitors Description
4.2 Competitive Advantage

Chapter 5. Management and Operation Section

5.1 Organizational Structure
5.2 Strength and Weaknesses of Management
5.3 Business Operation

Chapter 6. Financial Plan

6.1 Financial Objectives
6.2 Enterprise Expenses
6.2.1 Supply and materials Expenses
6.2.2 Operational Expenses
6.3 Financial Statements
6.3.1 Projected Income Statement
6.3.2 Projected Cash Flow

Chapter 7. Financial Analysis

 A BUSINESS PLAN
“BANANA PRODUCTION PROJECT”
Brgy. Sumile, Butuan City

CHAPTER 1. PROJECT PROFILE

1.1 RATIONALE

Banana is the most economically important fruit crop in the Philippines and
the only locally grown fruit available year-round. Bananas are grown in diverse environments
in the country, from the lowlands, flat and sloping uplands to the marginal hillylands.
Latundan, lakatan and saba are mostly grown in the backyard or as a component in an
intercropping scheme with minimum care and management.

Fresh Lakatan is very popular in the market. However, supply does not always meet this
high demand especially in urban cities and in Butuan City. Lakatan, sold on market,
sometimes come from Agusan del Sur Province and Davao areas. These kind of bananas are
more expensive because of their high palatability and sensitive during in transportation. It is
very perishable crops and high risk of damages which resulted to high transportation cost.
Hence, Lakatan produced in Butuan City can be very competitive, with market opportunities
and easy accessible to the market.

1.2 ECLEO FARM

Ecleo Farm is located at Brgy. Sumile, Butuan City covering more or less 5 hectares.
It was managed by Mr. Ecleo. The farm were already engaged in banana production
specifically Lakatan Production since 2012. The farm is very suitable for Banana Production
specially the Lakatan variety because of favorable climatic condition and high fertility of the
soil in the area.

The farm is 25 kms away and 18 Kms from Langihan Public Market and South Public Market
at Villa Kananga, Butuan City. It can be reached through traversing the concreted Butuan-
Las Nieves-Sibagat National Highway Road and ongoing concreting of Sumile Tourism
Road. The farm is near from the monkey tourism site in Brgy. Sumile.

With the existing features and favorable condition in the area, the farm is very strategic for
Lakatan production. It is expected that lakatan production of Ecleo farm with the technical
and financial assistance of government institution, the maximum yield of lakatan can achieve.

The proposed “Banana Production Project” of Ecleo Farm planned to cater the large volume
of demand of Lakatan in the market. The farm has a great role in the contribution towards
food self-sufficiency in the city of Butuan.

1.3 Goal and Objectives of the Project

The main purpose of this business plan is to apply financial loan to Land Bank of the
Philippines –Agricultural Comprehensive Enhancement Fund (ACEF) in order to expand its
current operation.
 A BUSINESS PLAN
“BANANA PRODUCTION PROJECT”
Brgy. Sumile, Butuan City
Specifically, the farm aims to:

1. To supply banana (lakatan) in Butuan City and nearest communities in the farm
2. To showcase the best agricultural practices for banana (lakatan) production
3. Showcase a best practice as a beneficiary Land Bank of the Philippines –
Agricultural Comprehensive Enhancement Fund.
 A BUSINESS PLAN
“BANANA PRODUCTION PROJECT”
Brgy. Sumile, Butuan City
1.4 Project Location and Customers

Ecleo farm is located at Brgy. Sumile, Butuan City (Figure 1). It can be reached by
all kinds of land transportation through concrete road connecting Butuan to Las Nieves Road
and Sumile Tourism Road leading to Sumile Eco Park. The location of the project is suitable
for Banana Production and farm tourism. Butuan City and Caraga Region is the potential
market of this project with sufficient of volume of their products.
 A BUSINESS PLAN
“BANANA PRODUCTION PROJECT”
Brgy. Sumile, Butuan City
CHAPTER 2. PRODUCT AND SERVICES

2.1 Services and Product

The products and services of this project are fresh banana (lakatan) and banana bulb
seedlings. The farm also aim to become accredited Learning Site to showcase the appropriate
technology of Lakatan Production in the locality to be offered to the banana farmers.

Recently, the farm was already engaged in Banana Production (Lakatan) and Coconut
Production since 2012. It was observed that the Lakatan Production is very suitable in the
area and high profitable business.
The farm decided to expand their farm operation and planned to develop the 5 hectares
agricultural lot. The farm also aims to become model farm of Lakatan Production in Butuan
City offerning fresh Lakatan and high quality banana bulb seedlings.

With the target to have competitive business, the farm planned to have farm to market
concept to be enable to increase the profit.

2.2 Existing Asset

The farm had 5 hectares agricultural lot to expand the lakatan production in Brgy.
Sumile which acquired last 2012 planted with Banana( Lakatan) and coconut.

CHAPTER 3. MARKET ANALYSIS

3.1 Customers and Market Area growth

The target customers of this project are local vendors in Butuan City Public Market
and Banana Farmers in Brgy. Sumile and nearest barangays in the area.
 A BUSINESS PLAN
“BANANA PRODUCTION PROJECT”
Brgy. Sumile, Butuan City

3.3 Market Demand, Volume and Potential

Butuan City has total population of 337,000 as of 2015. The city has insufficient
supply of banana especially lakatan variety. Majority of lakatan products which sell in the
City Public Market are from Agusan del Sur and Agusan del Norte Provinces. In the market,
Lakatan considered as high demand agricultural products due to high contents of nutrient and
minerals, high palatability and served as semi major food in the table . Currently, Butuan City
market has lacking of supply of Lakatan due to high demand.

The farm also aim to supply demand of Banana Products in Sumile Eco Park to be offered to
all tourist which feeding to large population of monkey species.

3.5 Sales Potential and Volume

Table 3 had shown the projected sales potential and volume of this enterprise,
assuming all factors affecting market demand to be constant.

Table 3. Estimated sales potential and volume of the project

Particulars Year 1
Income:
Banana Production, kg 50,000
Price 25.00
Sales 1,250,000.00
Banana Seedlings, pcs 2,000
Price 10.00
Sales 20,000.00
Gross Income, PhP 1,270,000.00

CHAPTER 4.0 COMPETITION

4.1 Competitors Description

The competitors in this project are the Banana Growers in Agusan Del Norte and Agusal del
Sur provinces.

4.3 Competitive Advantage

 A BUSINESS PLAN
“BANANA PRODUCTION PROJECT”
Brgy. Sumile, Butuan City

The competitive advantages of this project are its strategic location, quality products,
affordable pricing and their product promotion. The farm is 15 kms and 25 kms away from
the Butuan City public market. Fresh lakatan products produced in this project will lessen the
damages in trading to the market which resulted to quality fresh lakatan products and it will
compete to the public market.

4.3.2 Price

The pricing of the hog products should be market based considering also the pricing
structure of its competitor. In –depth surveys of prospective consumers can also be the
guidance of the association in its pricing policies. Further, conversation with vendors can also
be a good guidance of the association to be able to feel the market pulse.

4.3.3 Promotion

The association will promote its product and services thru the social networking
marketing such as Facebook, Twitter, Instagram and websites. Print and broadcast media in
Butuan City can also be utilized to expand the reach of the communication and information
activities.

CHAPTER 5.0 MANAGEMENT AND OPERATION

5.1 Management

The enterprise will be managed and supervised by its Farm Manager, Mr. Amor V.
Ecleo. Below is the organizational structure and the roles and responsibilities of personnel of
the enterprise.

Farm Manager
Bookkeeper
 A BUSINESS PLAN
“BANANA PRODUCTION PROJECT”
Brgy. Sumile, Butuan City

Farm Worker (6) Driver

Position Roles and Responsibilities

Farm Manager  Manages and supervises the over-all operations and
directions of the farm
 Trouble-shoots problems and gaps that arises
 Takes charge of procurement and hauling of supply and
materials
 Act as marketing officer
Bookkeeper  Checks and maintains accounting books
 Provides advice on proper handling of sales disbursement
records
 Act as cashier
Farm Worker (8)  Assist the Farm Manger in the whole operation in the Farm
 Ensure proper storage and safety handling of supplies and
materials in the Farm
 Maintains cleanliness and orderliness

Driver  Responsible in the transportation of the supplies and

products

The organizational structure is simple and designed in such a way that feedback
mechanism can be easily communicated.

The enterprise also practice daily meeting to recognize performance, provide

suggestions, solve problems and instruct tasks and assignments.

5.2 Strengths and Weaknesses of Management

The strengths and weaknesses of the management of this enterprise is described

below.

Parameters Strengths Weaknesses

Organization structure  Plain and simple
 Provides instruction and
feedback directly
Staffing  Close family relation  No performance
 Competent staff standards of staff
Leadership  Motivated and inspired
leadership
 A BUSINESS PLAN
“BANANA PRODUCTION PROJECT”
Brgy. Sumile, Butuan City
Control  Regular monitoring and  Limited internal control
evaluation is conducted
 A BUSINESS PLAN
“BANANA PRODUCTION PROJECT”
Brgy. Sumile, Butuan City
6.0 FINANCIAL PLAN

6.1 Financial Objectives

This business plan is formulated to qualify for a loan in the amount of PhP
1,000,000.00 to Land Bank of the Philippines Agricultural Competitiveness Enhancement
Fund Program. The loan proceeds will be used for expansion of farm operation.

In its goal to expand its operation, this project will provide equity of (PhP 561,910.21)
to operate the enterprise and cost of goods to be sold and one cycle (3) month operation
expenses, as described below.

6.2 Enterprise Project Cost

The total project cost is Php 1,561,910.21. The amount of Php 561,910.21 is the
proponent’s equity in kind while the amount of Php 1,000,000.00 is the cash amount of Loan
Proceeds.

The loan proceeds consist of procurement of provision of farm inputs, planting

materials, farm tools and procurement of hauling truck.

Supply and materials expenses is the capital or amount needed to procure all expected
volume of various farm inputs for production for one year (3) month. Operating expenses
covers salaries and wages, utilities, fuel and oil, repair and maintenance,office supplies and
permits and regulatory fees.

6.2.1 Supply and Materials Expense

In the table below are the supplies and materials needed for the establishment of farm
and during the operation.

A. Planting Materials      
        Year 1
Cost per
Particulars Quantity Unit
Unit  
Banana Bulb Seedlings 5,000 unit 40
200,000.00
Total Expenses
      200,000.00

B. Farm Inputs      
        Year 1
Cost per
Particulars Quantity Unit
Unit  
Cellophane 5000 pcs 8
40,000.00
Organic Fertilizer 50 bags 450
 A BUSINESS PLAN
“BANANA PRODUCTION PROJECT”
Brgy. Sumile, Butuan City
22,500.00
Pesticides 10 liters 1000
10,000.00
Total Expenses
      72,500.00

Particulars Quantity Unit Unit Cost Total Cost

10,000.
Grasscutter 1 unit 10,000
00
Bolo 10 unit 200.00 2,000.00
Jungle Bolo 10 unit 500.00 5,000.00
Hole Digger 15 unit 1,000.00 15,000.00
Shovel 20 unit 500.00 10,000.00
Spray Can 10 units 2,000.00 20,000.00
Pikmatoc 10 units 500.00 5,000.00
Nylon 10 Length 100.00 1,000.00
Bamboo Pole 500 pcs 2.00 1,000.00
Bamboo Stick 5000 pcs 0.50 2,500.00
Meter Stick 2 pcs 20.00 40.00

6.2.2 Operating Expenses

Table 4 shows the details of the estimated one cycle (3) month operation expenses.

Table 4. Estimated One cycle Operating Expenses

Particulars Quantity Unit Cost per Unit Year 1

Salaries and Wages:        
Farm Manager 1 monthly 8,000.00 96,000.00
Farm worker (6 FW @ PhP
6 monthly 33,000.00
5,500.00/month) 396,000.00
Bookkeeper 1 monthly 4,000.00 48,000.00
Driver 1 monthly 4,000.00 48,000.00
Fuel and Oil   monthly 36,000.00 432,000.00
Repair and maintenance   annualy 25,000.00 25,000.00
Office Supplies   monthly 500.00 6,000.00
Permits and other regulatory fees   annualy 6,000.00 6,000.00
Subtotal       1,057,000.00
Add: Depreciation       34,480.83
Total Expenses       1,091,480.83
 A BUSINESS PLAN
“BANANA PRODUCTION PROJECT”
Brgy. Sumile, Butuan City

6.3 Financial Statements

6.3.1 Projected Income Statement

Pa rtic ula rs Ye a r 1 Ye a r 2 Ye a r 3 Ye a r 4 Ye a r 5
Inc o m e :
Ba n a n a Pro d u c tio n , kg 50,000 100,000 100,000 100,000 100,000
Pric e 25.00 26.25 27.56 28.94 30.39
Sa le s 1,250,000.00 2,625,000.00 2,756,250.00 2,894,062.50 3,038,765.63
Ba n a n a Se e d lin g s, p c s 2,000 2,625 2,756 2,894 3,039
Pric e 10.00 10.50 11.03 11.58 12.16
Sa le s 20,000.00 27,562.50 30,387.66 33,502.39 36,936.39
G ro ss Inc o m e , PhP 1,270,000.00 2,652,562.50 2,786,637.66 2,927,564.89 3,075,702.01

O p e ra ting Exp e nse s:

Pla n tin g M a te ria ls 200,000.00 - - - -
Fa rm In p u ts 72,500.00 73,225.00 73,957.25 74,696.82 75,443.79
Sa la rie s a n d Wa g e s: 588,000.00 593,880.00 599,818.80 605,816.99 611,875.16
Fu e l a n d O il 432,000.00 436,320.00 440,683.20 445,090.03 449,540.93
Re p a ir a n d m a in te n a n c e 25,000.00 25,250.00 25,502.50 25,757.53 26,015.10
O ffic e Su p p lie s 6,000.00 6,060.00 6,120.60 6,181.81 6,243.62
Pe rm its a n d o th e r re g u la to ry fe e s 6,000.00 6,060.00 6,120.60 6,181.81 6,243.62
To ta l e xp e nse s 1,129,500.00 1,140,795.00 1,152,202.95 1,163,724.98 1,175,362.23

Ne t Inc o m e 140,500.00 1,511,767.50 1,634,434.71 1,763,839.91 1,900,339.78

6.3.2 Monthly Cash Flow

 A BUSINESS PLAN
“BANANA PRODUCTION PROJECT”
Brgy. Sumile, Butuan City

Pa rtic ula rs Mo nth 0 Mo nth 1 Month 2 Month 3 Month 4 Month 5 Month 6 Mo nth 7 Mo nth 8 Month 9 Month 10 Mo nth 11 Mo nth 12
Ca sh Inflow
Lo a n Pro c e e d s 1,000,000.00
Eq uity 561,910.21
C a sh Sa le s 105,833.33 105,833.33 105,833.33 105,833.33 105,833.33 105,833.33 105,833.33 105,833.33 105,833.33 105,833.33 105,833.33 105,833.33
Tota l Ca sh Inflow, PhP 1,561,910.21 105,833.33 105,833.33 105,833.33 105,833.33 105,833.33 105,833.33 105,833.33 105,833.33 105,833.33 105,833.33 105,833.33 105,833.33

Ca sh Outflow
Land Development Cost 130,000.00
Procurement of Site Development
Materials 71,540.00
Procurement of Hauling Truck 315,000.00
Planting Materials 200,000.00
Fa rm Inp uts 36,250.00 36,250.00
Sa la rie s a nd Wa g e s: 49,000.00 49,000.00 49,000.00 49,000.00 49,000.00 49,000.00 49,000.00 49,000.00 49,000.00 49,000.00 49,000.00 49,000.00
Fue l a nd Oil 36,000.00 36,000.00 36,000.00 36,000.00 36,000.00 36,000.00 36,000.00 36,000.00 36,000.00 36,000.00 36,000.00 36,000.00
Re p a ir a nd m a in te na nc e 2,083.33 2,083.33 2,083.33 2,083.33 2,083.33 2,083.33 2,083.33 2,083.33 2,083.33 2,083.33 2,083.33 2,083.33
O ffic e Sup p lie s 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00
Pe rm its a nd o the r re g ula to ry fe e s 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00
In te re st ra te @ 2 % p e r a nnum 1,666.67 1,666.67 1,666.67 1,666.67 1,666.67 1,666.67 1,666.67 1,666.67 1,666.67 1,666.67 1,666.67 1,666.67
Lo a n Pa ym e n t 16,666.67 16,666.67 16,666.67 16,666.67 16,666.67 16,666.67 16,666.67 16,666.67 16,666.67 16,666.67 16,666.67 16,666.67

Tota l Ca sh Outflow, PhP 0.00 859,206.67 106,416.67 106,416.67 106,416.67 106,416.67 106,416.67 142,666.67 106,416.67 106,416.67 106,416.67 106,416.67 106,416.67

Ne t Ca sh Flow 1,561,910.21 -753,373.33 -583.33 -583.33 -583.33 -583.33 -583.33 -36,833.33 -583.33 -583.33 -583.33 -583.33 -583.33

Ad d : Be g inning c a sh b a la nc e 0 1,561,910.21 808,536.88 807,953.54 807,370.21 806,786.88 806,203.54 805,620.21 768,786.88 768,203.54 767,620.21 767,036.88 766,453.54

Ca sh Ba la nc e 1,561,910.21 808,536.88 807,953.54 807,370.21 806,786.88 806,203.54 805,620.21 768,786.88 768,203.54 767,620.21 767,036.88 766,453.54 765,870.21
 A BUSINESS PLAN
“BANANA PRODUCTION PROJECT”
Brgy. Sumile, Butuan City
Projected Cash Flow

Pa rtic ula rs Ye a r 0 Ye a r 1 Ye a r 2 Ye a r 3 Ye a r 4 Ye a r 5
Ca sh Inflo w
Lo a n Pro c e e d s 1,000,000.00
Eq u it y 561,910.21
C a sh Sa le s 1,270,000.00 2,652,562.50 2,786,637.66 2,927,564.89 3,075,702.01
To ta l Ca sh Inflo w, PhP 1,561,910.21 1,270,000.00 2,652,562.50 2,786,637.66 2,927,564.89 3,075,702.01

Ca sh Outflo w
Land Development Cost 130,000.00
Procurement of Site Development
Materials 71,540.00
Procurement of Hauling Truck 315,000.00
Planting Materials 200,000.00
Farm Inputs 72,500.00 73,225.00 73,957.25 74,696.82 75,443.79
Sa la rie s a n d Wa g e s: 588,000.00 593,880.00 599,818.80 605,816.99 611,875.16
Fu e l a n d O il 432,000.00 436,320.00 440,683.20 445,090.03 449,540.93
Re p a ir a n d m a in t e n a n c e 25,000.00 25,250.00 25,502.50 25,757.53 26,015.10
O ffic e Su p p lie s 6,000.00 6,060.00 6,120.60 6,181.81 6,243.62
Pe rm it s a n d o t h e r re g u la t o ry fe e s 6,000.00 6,060.00 6,120.60 6,181.81 6,243.62
In t e re st ra t e @ 2 % p e r a n n u m 20,000.00 20,000.00 20,000.00 20,000.00 20,000.00
Lo a n Pa ym e n t 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00

To ta l Ca sh Outflo w, PhP 716,540.00 1,349,500.00 1,360,795.00 1,372,202.95 1,383,724.98 1,395,362.23

Ne t Ca sh Flo w 845,370.21 -79,500.00 1,291,767.50 1,414,434.71 1,543,839.91 1,680,339.78

Ad d : Be g in n in g c a sh b a la n c e 0 845,370.21 765,870.21 2,057,637.71 3,472,072.41 5,015,912.33

Ca sh Ba la nc e 845,370.21 765,870.21 2,057,637.71 3,472,072.41 5,015,912.33 6,696,252.11

7.0 FINANCIAL ANALYSIS

 A BUSINESS PLAN
“BANANA PRODUCTION PROJECT”
Brgy. Sumile, Butuan City
 A BUSINESS PLAN
“BANANA PRODUCTION PROJECT”
Brgy. Sumile, Butuan City
Pa rtic ula rs Ye a r 0 Ye a r 1 Ye a r 2 Ye a r 3
Be ne fits
In c o m e fro m Ba n a n a Pro d u c tio n 1,250,000.00 2,625,000.00 2,756,250.00
In c o m e fro m Ba n a n a Se e d lin g s 20,000.00 27,562.50 30,387.66
To ta l Be ne fits, PhP 0.00 1,270,000.00 2,652,562.50 2,786,637.66

Co st
Eq u it y 561,910.21
La nd De v e lo p m e n t Co st 130,000.00
Pro c u re m e n t o f Sit e De v e lo p m e nt Ma t e ria ls 71,540.00
Pro c ure m e nt o f Ha uling Truc k 315,000.00
Pl a nti ng Ma teri a l s 200,000.00
Fa rm Inputs 72,500.00 73,225.00 73,957.25
Opera ti ona l Expens e s 867,650.63 1,136,531.67 1,181,688.20
De p re c ia t io n a n d Am o rt iza t io n 254,480.83 288,961.67 323,442.5
To ta l Co st, PhP 1,278,450.21 1,194,631.46 1,498,718.33 1,579,087.95

N e t Be ne fits - 1,278,450.21 75,368.54 1,153,844.17 1,207,549.71

Fina nc ia l Pa ra me te rs Va lue
Ra te o f In v e stm e n t (RO I) 64.54%
In te rn a l Ra te o f Re tu rn 52.66%
Ne t Pre se n t Va lu e , Ph P @ i=15% ₱2,131,839.71
Be n e fit-C o st Ra tio (BC R) 2.30
Pa y-b a c k Pe rio d 2 ye a r
Pro fita b ilty Ra te 11%
Liq u id ity Ra tio 50%
So lv e n c y Ra tio 14%

7.1 Rate of Investment (ROI) per Year

With initial investment of PhP is 1,561,910.21 which constitutes of Php 512,870.21 as

enterprise equity in kind and Php 1,00,000.00 loan proceeds from Land Bank of the
Philippines Loan Access Program, the rate of Investment per year of operation is 64.54 %.
Since the enterprise ROI is greater than the maximum allowable rate of return of 18%, this
enterprise is a worthwhile investment.

7.2 Internal Rate of Return (IRR)

Setting the maximum allowable rate of return (MARR) which is equivalent to the
existing bank interest rate plus inflation rate at 12% per annum, the internal rate of return
(IRR) of this enterprise project is 52.66 %. The IRR being higher than the MARR indicates
that this projects is a viable business.

7.3 Net Present Value (NPV)

Having a net present value (NPV) of PhP 2,131,839.71 which is greater than zero, it
can be inferred that this enterprise project is a commendable investment.
 A BUSINESS PLAN
“BANANA PRODUCTION PROJECT”
Brgy. Sumile, Butuan City
7.4 Benefit-Cost Ratio (BCR)

With a benefit-cost ratio (BCR) of 2.30 which is greater than 1.0, this means that
every peso investment will earn 1.30 centavos. Thus, it can be concluded that this enterprise
is a good business.

7.5 Pay-back Period

Referring at the projected cash flow statement, it can be observed that the loan
proceed of Php 1,000,000.00 from Land Bank of the Philippines Loan Access Program can
be repaid within two year of operating the enterprise.

Since the pay-back period is less than the designed operational life of the business
which is five years, it can be said that this enterprise project is a worthy investment.

Prepared by: Noted by:

MARK GIL F. BAYNOSA, ABE AMOR V. ECLEO

Agricultural Technologist Farm Owner, Ecleo Farm
 A BUSINESS PLAN
“BANANA PRODUCTION PROJECT”
Brgy. Sumile, Butuan City
 A BUSINESS PLAN
“BANANA PRODUCTION PROJECT”
Brgy. Sumile, Butuan City