Aronciano, Edward

Bustaleno, Consuelo Maria Anttoinea

Engracia, Vi Anjela
Sanchez, Rose Gayle
Sy, Sydny Shaine
Ubas, Given
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 Neo Culture Co. was established to upgrade the quality of health and wellness of

Filipinos for 25 years; providing quality and affordable medicine, healthy food options,

and wellness centers.

As a health and wellness company, Neo Culture Co. is shaped by these objectives:

• To enhance the quality of health and wellness in the Philippines

• To generate profit

• To provide facilities and products within the reach of Filipinos

• To create opportunities to the community by creating jobs and supporting local

produce

• To promote a healthy living at affordable price points

This year, the company will allocate 1.2M peso budget towards a company project with

the aim of providing excellent service to the consumers. A total of 6 projects were

chosen from a pool of proposals in search of the best project that will be implemented.
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 I
Proposed Projects

PROJECT NATURE OF BUDGET PROJECT IS IT RISKS BENEFITS

THE DURATION PROFITABLE?

NAME
PROJECT

Installation of Sanitation Php 1-3 months Yes -Disruption -provides a safer

Disinfection 800,000 of operation work environment
Tunnel for -Power
-lessens health
Main Gate interruption
risk within the
workplace
Construction Sanitation Php 2 months Yes -Disruption -shortens the
of Sanitation 600,000 of operation preparation time of
Room - Possible risk
employees
of COVID-19
spread -increases production
time
-provides a safer work
environment

Purchase and Sanitation Php 2 months Yes -improper -Create a hygienic place
Installation of 280,000 equipment for the consumers
Sanitary use
-Lessen the cleaning
Equipment -malfunction
of time of employees
equipment
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Installation of Php 3 months Yes -machine -increases product
a Fully 5,000,000 damage output
Automatic -desterilization
of mask -less human labor
N95 Face
Mask -lesser working hours
Machine
Installation of Store Php 1 month Yes -disruption of -provides natural
Single Panel environment 210,000 operation ventilation
Sliding protection -workplace
-creates a safe
Transaction disturbance
Window environment for the
customers to transact
and employees to work
in
Installation of Product Php 1-2 months Yes -machine -lessen production
Embroidery improvement 1,117,400 malfunction Expenses
Machine -workplace
-increase customer
accidents
-lesser use of Satisfaction
machine -ensure high quality
because of
embroidery
less orders

Fig 1.- Proposed Projects Table

Figure 1 above shows the six projects chosen. It provides data on the nature of the

project, its budget, the duration, risks, and benefits of each of the projects. This will

serve as a guide in evaluating these projects and deciding which project will be

implemented.
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 II
Project Prioritization Matrix

Projects Prioritization Matrix

Indicate the name of your Neo Culture

matrix Co.

Indicate the name of your first Net Present

axis Value

Indicate the name of your Technical

second axis Feasibility

Name of Project Net Technical

present feasibility
Value
Project 1: Installation of Single Panel Transaction Window 6.2 9.1
Project 2: Construction of Sanitation Room for Farm Boy 7 8
Foods Manufacturing
Project 3: Installation of A Fully Automatic N95 Face Mask 8.8 5
Machine
Project 4: Installation of Disinfection Tunnel for Main Gate 7.2 7.2
Project 5: Installation of Embroidery Machine for Dandy 9.5 9
Garments
Project 6: Purchase and Installation of Sanitary Equipment 8.2 8.4
For Breaktime Bakeshoppe
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 Prioritization Matrix
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PROJECT 1 PROJECT 5
9
PROJECT 6
PROJECT 2
8
PROJECT 4
7

PROJECT 3
Technical Feasibility 5
0 1 2 3 4 5 6 7 8 9 10

0
White Elephant Net Present Value Oyster

Fig.2- Prioritization Matrix

LEGEND

• Project 1 - Installation of Single Panel Transaction Window

• Project 2 - Construction of Sanitation Room for Farm Boy Foods Manufacturing
• Project 3 - Installation of A Fully Automatic N95 Face Mask Machine
• Project 4 - Installation of Disinfection Tunnel for Main Gate
• Project 5 - Installation of Embroidery Machine for Dandy Garments
• Project 6 - Purchase and Installation of Sanitary Equipment For Breaktime
Bakeshoppe
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 Figure 2 shows the project prioritization matrix of Neo Culture

company. There are six proposed project for the company and each

project is assessed through the variables net present value and

technical feasibility.

All projects belonged to the pearl category, but the installation of

embroidery machine for the company has the highest score of

prioritization among all projects. Which is followed by the project of

installation of single panel transaction window.

Even though all projects belongs to the pearl category under the

matrix. Project 3 which was the installation of a Fully automatic N95

Face Mask machine had the least prioritization because of its low score

in technical feasibility, for the cost is to high.

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 PROJECT 1
Installation of Single Panel
Transaction Window YEAR 0 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 TOTAL
Required 18%
Outflows -210,000 -210,000
Inflows 600,000 400,000 700,000 300,000 550,000 2,550,000
Net Inflows 600,000 400,000 700,000 300,000 550,000 2,340,000
NPV 1,406,937

PROJECT 2
Construction of Sanitation Rooms YEAR 0 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 TOTAL
Required 18%
-
Outflows 600,000 -600,000
Inflows 1,000,000 2,000,000 2,500,000 3,000,000 2,000,000 10,500,000
Net Inflows 1,000,000 2,000,000 2,500,000 3,000,000 2,000,000 9,900,000
NPV 5,626,989
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 PROJECT 3
Installation of Fully
Automatic N95 Face Mask
Machine YEAR 0 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 TOTAL
Required 18%
Outflows -4,575,000 -4,575,000
Inflows 8,000,000 5,000,000 6,500,000 6,000,000 3,000,000 28,500,000
Net Inflows 8,000,000 5,000,000 6,500,000 6,000,000 3,000,000 23,925,000
NPV 14,157,745

PROJECT 4
Installation of Disinfection Tunnel YEAR 0 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 TOTAL
Required 18%
Outflows -800,000 -800,000
Inflows 1,000,000 1,500,000 2,500,000 2,000,000 1,000,000 8,000,000
Net Inflows 1,000,000 1,500,000 2,500,000 2,000,000 1,000,000 7,200,000
NPV 4,114,998
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 PROJECT 5
Installation of Embroidery Machine YEAR 0 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 TOTAL
Required 18%
Outflows -1,117,400 -1,117,400
Inflows 3,000,000 5,000,000 4,500,000 4,000,000 2,000,000 18,500,000
Net Inflows 3,000,000 5,000,000 4,500,000 4,000,000 2,000,000 17,382,600
NPV 10,692,108

PROJECT 6
Installation of Sanitary Equipments YEAR 0 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 TOTAL
Required 18%
-
Outflows 280,000 -280,000
Inflows 750,000 500,000 550,000 400,000 600,000 2,800,000
Net Inflows 750,000 500,000 550,000 400,000 600,000 2,520,000
NPV 1,518,013
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 Net present value ( NPV) is the contrast between the present value of cash inflows and

the present value of cash outflows over time. NPV is used to assess the feasibility of the

planned expenditure or scheme in capital budgeting and expenditure planning.

Below is the mathematical formula for calculating the NPV:

NPV = (Cash flows)/( 1+r)i

Where, Cash flows= Cash flows in the time period r = Discount rate i = time period

From the tables presented, we estimated the NPV for each section. As seen in the

formula, we need to discount them at a certain pace in order to derive the present value

of the cash flows. This rate is determined for the project, taking into account the yield

on project with an equal risk or borrowing expense. In other words, we have obtained a

18 % discount on the necessary cost fixed by the firm.

In order to solve, cash flows are the inflows that we have calculated and divided the

clash flows to (1+r) where r is the discount rate that is 20% and multiplied to I which is

the time span. And we used the time span 1 to 5 from year 1 to year 5. After the

measurement of the values of each necessary value in the formula, we obtained the sum

from year 1 to year 5 and subtracted the sum from the net inflow and the result is the
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NPV.
 III
Prioritization Table
Neo Company will use a prioritization table to assess each project through a scale of
0-10 with 8 different criteria under this table. Each criterion will be multiplied to the
weight percentage given under the table to get the total weighted for each of these
projects.

CRITERIA Urgen Relatedn Custom Projec Profitabil Effectiven Adaptabil Budget Weight
cy ess to er t ity ess & ity Justificati ed
company loyalty durati Efficiency on Total
objective on
s

WEIGHT 2.5 3.0 1.0 2.0 3.0 2.0 1.25 3.0

Purchase 6 8 8 4 7 8 7 7 121.75
and
Installation
of Sanitary
Equipment
For
Breaktime
Bakeshopp
e

Installation 9 10 10 8 10 10 9 9 166.75
of Single
Panel
Transaction
Window

Installation 9 9 8 8 7 8 8 6 138.5
of Fully
Automatic
N95 Face
Mask
Machine

Constructio 9 9 10 9 8 8 9 9 155.3
n of
sanitation
room for
farmboy
foods
manufacturi
ng

Installation 7 7 8 5 8 9 8 6 126.5
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of
 Embroidery
machine for
Dandy
Garments

Installation 7 7 8 6 8 8 7 8 131.25
of
disinfection
tunnel for
main gate
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 III
Conclusion

The discipline that will be used by Neo Culture Co. in prioritizing projects is based on
the timeliness of the project, financial considerations such as limited budget, and
profitability.

The proposed projects are as follows:

Project 1

Installation of Single Panel Transaction Window

Project 2

Construction of Sanitation Room for Farmboy Foods Manufacturing

Project 3

Installation of A Fully Automatic N95 Face Mask Machine

Project 4

Installation of Disinfection Tunnel for Main Gate

Project 5

Installation of Embroidery Machine for Dandy Garments

Project 6

Purchase and Installation of Sanitary Equipment for Breaktine Bakeshoppe

With a budget of 1.2 million pesos, Neo Culture Co. will not execute all six projects at
once. However, it can proceed with Project 5, namely the Installation of an embroidery
machine for Dandy Garments. The company decided to move with this project since it
has the highest net present value of 9.5 among the six projects (shown in the
prioritization matrix). It is also more timely and fitting with the given budget. By
proceeding with this project, it is more guaranteed that the company will gain profit in
due time.
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