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.

I
2
 Proposed Projects

PROJECT NATURE OF BUDGET PROJECT IS IT RISKS BENEFITS

THE DURATION PROFITABLE?

NAME
PROJECT
Installation of Sanitation Php 800,000 1-3 months Yes -Disruption of -provides a safer
Disinfection operation work environment
Tunnel for -Power
-lessens health
Main Gate interruption
risk within the
workplace
Construction of Sanitation Php 600,000 2 months Yes -Disruption of -shortens the
Sanitation operation preparation time of
Room - Possible risk
employees
of COVID-19
spread -increases production
time
-provides a safer work
environment

Purchase and Sanitation Php 280,000 2 months Yes -improper -Create a hygienic place
Installation of equipment use for the consumers
Sanitary -malfunction
-Lessen the cleaning
Equipment of equipment
time of employees
Installation of a Php 3 months Yes -machine -increases product
Fully 5,000,000 damage output
Automatic N95 -desterilization
of mask -less human labor
Face Mask
Machine -lesser working hours
Installation of Store Php 210,000 1 month Yes -disruption of -provides natural
Single Panel environment operation ventilation
Sliding protection -workplace
-creates a safe
Transaction disturbance
2

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 less
embroidery
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.

II
Project Prioritization Matrix

Projects Prioritization Matrix

   
Indicate the name of your matrix Neo Culture Co.
   
Indicate the name of your first axis Net Present
Value
   
Indicate the name of your second Technical
2

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
2
 Prioritization Matrix
10

9.1 9
9
8.4
8
8
7.2
7

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

Net Present Value

2
 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
2
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.
2
 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              
 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              

PROJECT 5
Installation of Embroidery Machine YEAR 0 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 TOTAL
Installation o
Required 18%
Required
Outflows -1,117,400 -1,117,400
Outflows
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
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              
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 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 Urgenc Relatednes Custome Project Profitabili Effectivene Adaptabili Budget Weighte
y s to r loyalty duratio ty ss & ty Justificati d Total
company n Efficiency on
objectives

    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
Bakeshoppe

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
of
Embroidery
machine for
Dandy
Garments

Installation 7 7 8 6 8 8 7 8 131.25
of
disinfection
tunnel for
main gate
 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.