St.

Anthony’s College
ENGINEERING AND TECHNOLOGY DEPARTMENT
San Angel, San Jose, Antique

ECONOMIC ANALYSIS (Computation Sheet)

CASE 3

Rate / Month
Years Rented
Rooms
Commercial Space
(max. of 4 persons)
1 to 5 ₱15,000.00 ₱18,000.00
6 to 10 ₱17,000.00 ₱19,000.00
11 to 15 ₱16,000.00 ₱17,000.00
No. of Units 4 20
(+NPV) (-NPV) Interval
Interest (i): 18% 25% 7%
Life span (n): 15
Ko: Php. 16,920,807.57

Salvage Value (SV) = 10% of Ko Tax (T) = 12% of Benefit

Maintenance (M) = 2% of Benefit Admin Cost (A) = 5% of Benefit

Benefit = (% occupancy) (rate of rent) (no. of units) (12)

Cost = Depreciation + Maintenance + Tax + Admin. Cost

Depreciation = (K o – SV )¿

Maintenance, Tax & Admin Cost = (2%*Benefit) + (12%*Benefit) + (5%*Benefit)

Year 1 (Case 3)

378
 St. Anthony’s College
ENGINEERING AND TECHNOLOGY DEPARTMENT
San Angel, San Jose, Antique

(%) of Occupancy = 95%

Benefit = (% occupancy) (rate of rent) (no. of units) (12)
Benefit = 95% [(₱15,000.00) (4) + (₱18,000.00) (20)]×12 = ₱4,788,000.00

Depreciation = (K o – SV )¿
Depreciation = ¿
Depreciation = ₱249,793.49

Maintenance, Tax & Admin Cost = (2%*Benefit) + (12%*Benefit) + (5%*Benefit)

Maintenance, Tax & Admin Cost = (19%) (₱4,788,000.00) = ₱909,720.00

Total Cost = Depreciation + Maintenance, Tax & Admin Cost

Total Cost = ₱249,793.49 + ₱909,720.00 = ₱1,159,513.49

Benefit – Cost = ₱4,788,000.00 – ₱1,159,513.49 = ₱3,628,486.51

Cumulative = ∑ (B – C) = ₱3,628,486.51

Year 2 (Case 3)

(%) of Occupancy = 96%

Benefit = (% occupancy) (rate of rent) (no. of units) (12)
Benefit = 96% [(₱15,000.00) (4) + (₱18,000.00) (20)]×12 = ₱4,838,400.00

Depreciation = (K o – SV )¿
Depreciation = ¿
Depreciation = ₱249,793.49

Maintenance, Tax & Admin Cost = (2%*Benefit) + (12%*Benefit) + (5%*Benefit)

Maintenance, Tax & Admin Cost = (19%) (₱4,838,400.00) = ₱919,296.00

379
 St. Anthony’s College
ENGINEERING AND TECHNOLOGY DEPARTMENT
San Angel, San Jose, Antique

Total Cost = Depreciation + Maintenance, Tax & Admin Cost

Total Cost = ₱249,793.49 + ₱919,296.00 = ₱1,169,089.49

Benefit – Cost = ₱4,838,400.00 – ₱1,169,089.49 = ₱3,669,310.51

Cumulative = ∑ (B – C) = ₱3,628,486.51+¿ ₱3,669,310.51 = ₱7,297,797.01

Year 3 (Case 3)

(%) of Occupancy = 97%

Benefit = (% occupancy) (rate of rent) (no. of units) (12)
Benefit = 97% [(₱15,000.00) (4) + (₱18,000.00) (20)]×12 = ₱4,888,800.00

Depreciation = (K o – SV )¿
Depreciation = ¿
Depreciation = ₱249,793.49

Maintenance, Tax & Admin Cost = (2%*Benefit) + (12%*Benefit) + (5%*Benefit)

Maintenance, Tax & Admin Cost = (19%) (₱4,888,800.00) = ₱928,872.00

Total Cost = Depreciation + Maintenance, Tax & Admin Cost

Total Cost = ₱249,793.49 + ₱928,872.00 = ₱1,178,665.49

Benefit – Cost = ₱4,888,800.00 – ₱1,178,665.49 = ₱3,710,134.51

Cumulative = ∑ (B – C) = ₱7,297,797.01 + ₱3,710,134.51 = ₱11,007,931.52

Year 4 (Case 3)

(%) of Occupancy = 98%

Benefit = (% occupancy) (rate of rent) (no. of units) (12)
Benefit = 98% [(₱15,000.00) (4) + (₱18,000.00) (20)] × 12 = ₱4,939,200.00

380
 St. Anthony’s College
ENGINEERING AND TECHNOLOGY DEPARTMENT
San Angel, San Jose, Antique

Depreciation = (K o – SV )¿
Depreciation = ¿
Depreciation = ₱249,793.49

Maintenance, Tax & Admin Cost = (2%*Benefit) + (12%*Benefit) + (5%*Benefit)

Maintenance, Tax & Admin Cost = (19%) (₱4,939,200.00) = ₱938,448.00

Total Cost = Depreciation + Maintenance, Tax & Admin Cost

Total Cost = ₱249,793.49 + ₱938,448.00 = ₱1,188,241.49

Benefit – Cost = ₱4,939,200.00 – ₱1,188,241.49 = ₱3,750,958.51

Cumulative = ∑ (B – C) = ₱11,007,931.52 + ₱3,750,958.51= ₱14,758,890.02

Year 5 (Case 3)

(%) of Occupancy = 99%

Benefit = (% occupancy) (rate of rent) (no. of units) (12)
Benefit = 99% [(₱15,000.00) (4) + (₱18,000.00) (20)] × 12 = ₱4,989,600.00

Depreciation = (K o – SV )¿
Depreciation = ¿
Depreciation = ₱249,793.49

Maintenance, Tax & Admin Cost = (2%*Benefit) + (12%*Benefit) + (5%*Benefit)

Maintenance, Tax & Admin Cost = (19%) (₱4,989,600.00) = ₱948,024.00

381
 St. Anthony’s College
ENGINEERING AND TECHNOLOGY DEPARTMENT
San Angel, San Jose, Antique

Total Cost = Depreciation + Maintenance, Tax & Admin Cost

Total Cost = ₱249,793.49 + ₱948,024.00 = ₱1,197,817.49

Benefit – Cost = ₱4,989,600.00 – ₱1,197,817.49 = ₱3,791,782.51

Cumulative = ∑ (B – C) = ₱14,758,890.02 + ₱3,791,782.51 = ₱18,550,672.53

Year 6 (Case 3)

(%) of Occupancy = 100%

Benefit = (% occupancy) (rate of rent) (no. of units) (12)
Benefit = 100% [(₱17,000.00) (4) + (₱19,000.00) (20)]×12 = ₱5,376,000.00

Depreciation = (K o – SV )¿
Depreciation = ¿
Depreciation = ₱249,793.49

Maintenance, Tax & Admin Cost = (2%*Benefit) + (12%*Benefit) + (5%*Benefit)

Maintenance, Tax & Admin Cost = (19%) (₱5,376,000.00) = ₱1,021,440.00

Total Cost = Depreciation + Maintenance, Tax & Admin Cost

Total Cost = ₱249,793.49 + ₱1,021,440.00 = ₱1,271,233.49

Benefit – Cost = ₱5,376,000.00 – ₱1,271,233.49 = ₱4,104,766.51

Cumulative = ∑ (B – C) = ₱18,550,672.53 + ₱4,104,766.51 = ₱22,655,439.04

Year 7 (Case 3)

(%) of Occupancy = 100%

Benefit = (% occupancy) (rate of rent) (no. of units) (12)

382
 St. Anthony’s College
ENGINEERING AND TECHNOLOGY DEPARTMENT
San Angel, San Jose, Antique

Benefit = 100% [(₱17,000.00) (4) + (₱19,000.00) (20)]×12 = ₱5,376,000.00

Depreciation = (K o – SV )¿
Depreciation = ¿
Depreciation = ₱249,793.49

Maintenance, Tax & Admin Cost = (2%*Benefit) + (12%*Benefit) + (5%*Benefit)

Maintenance, Tax & Admin Cost = (19%) (₱5,376,000.00) = ₱1,021,440.00

Total Cost = Depreciation + Maintenance, Tax & Admin Cost

Total Cost = ₱249,793.49 + ₱1,021,440.00 = ₱1,271,233.49

Benefit – Cost = ₱5,376,000.00 – ₱1,271,233.49 = ₱4,104,766.51

Cumulative = ∑ (B – C) = ₱22,655,439.04 + ₱4,104,766.51 = ₱26,760,205.54

Year 8 (Case 3)

(%) of Occupancy = 100%

Benefit = (% occupancy) (rate of rent) (no. of units) (12)
Benefit = 100% [(₱17,000.00) (4) + (₱19,000.00) (20)]×12 = ₱5,376,000.00

Depreciation = (K o – SV )¿
Depreciation = ¿
Depreciation = ₱249,793.49

Maintenance, Tax & Admin Cost = (2%*Benefit) + (12%*Benefit) + (5%*Benefit)

Maintenance, Tax & Admin Cost = (19%) (₱5,376,000.00) = ₱1,021,440.00

383
 St. Anthony’s College
ENGINEERING AND TECHNOLOGY DEPARTMENT
San Angel, San Jose, Antique

Total Cost = Depreciation + Maintenance, Tax & Admin Cost

Total Cost = ₱249,793.49 + ₱1,021,440.00 = ₱1,271,233.49

Benefit – Cost = ₱5,376,000.00 – ₱1,271,233.49 = ₱4,104,766.51

Cumulative = ∑ (B – C) = ₱26,760,205.54 + ₱4,104,766.51 = ₱30,864,972.05

Year 9 (Case 3)

(%) of Occupancy = 100%

Benefit = (% occupancy) (rate of rent) (no. of units) (12)
Benefit = 100% [(₱17,000.00) (4) + (₱19,000.00) (20)]×12 = ₱5,376,000.00

Depreciation = (K o – SV )¿
Depreciation = ¿
Depreciation = ₱249,793.49

Maintenance, Tax & Admin Cost = (2%*Benefit) + (12%*Benefit) + (5%*Benefit)

Maintenance, Tax & Admin Cost = (19%) (₱5,376,000.00) = ₱1,021,440.00

Total Cost = Depreciation + Maintenance, Tax & Admin Cost

Total Cost = ₱249,793.49 + ₱1,021,440.00 = ₱1,271,233.49

Benefit – Cost = ₱5,376,000.00 – ₱1,271,233.49 = ₱4,104,766.51

Cumulative = ∑ (B – C) = ₱30,864,972.05 + ₱4,104,766.51 = ₱34,969,738.55

Year 10 (Case 3)

(%) of Occupancy = 100%

384
 St. Anthony’s College
ENGINEERING AND TECHNOLOGY DEPARTMENT
San Angel, San Jose, Antique

Benefit = (% occupancy) (rate of rent) (no. of units) (12)

Benefit = 100% [(₱17,000.00) (4) + (₱19,000.00) (20)] × 12 = ₱5,376,000.00

Depreciation = (K o – SV )¿
Depreciation = ¿
Depreciation = ₱249,793.49

Maintenance, Tax & Admin Cost = (2%*Benefit) + (12%*Benefit) + (5%*Benefit)

Maintenance, Tax & Admin Cost = (19%) (₱5,376,000.00) = ₱1,021,440.00

Total Cost = Depreciation + Maintenance, Tax & Admin Cost

Total Cost = ₱249,793.49 + ₱1,021,440.00 = ₱1,271,233.49

Benefit – Cost = ₱5,376,000.00 – ₱1,271,233.49 = ₱4,104,766.51

Cumulative = ∑ (B – C) = ₱34,969,738.55 + ₱4,104,766.51 = ₱39,074,505.06

Year 11 (Case 3)

(%) of Occupancy = 99%

Benefit = (% occupancy) (rate of rent) (no. of units) (12)
Benefit = 99% [(₱16,000.00) (4) + (₱17,000.00) (20)]×12 = ₱4,799,520.00

Depreciation = (K o – SV )¿
Depreciation = ¿
Depreciation = ₱249,793.49

385
 St. Anthony’s College
ENGINEERING AND TECHNOLOGY DEPARTMENT
San Angel, San Jose, Antique

Maintenance, Tax & Admin Cost = (2%*Benefit) + (12%*Benefit) + (5%*Benefit)

Maintenance, Tax & Admin Cost = (19%) (₱4,799,520.00) = ₱911,908.80

Total Cost = Depreciation + Maintenance, Tax & Admin Cost

Total Cost = ₱249,793.49 + ₱911,908.80 = ₱1,161,702.29

Benefit – Cost = ₱4,799,520.00 – ₱1,161,702.29 = ₱3,637,817.71

Cumulative = ∑ (B – C) = ₱39,074,505.06 + ₱3,637,817.71 = ₱42,712,322.77

Year 12 (Case 3)

(%) of Occupancy = 98%

Benefit = (% occupancy) (rate of rent) (no. of units) (12)
Benefit = 98% [(₱16,000.00) (4) + (₱17,000.00) (20)]×12 = ₱4,751,040.00

Depreciation = (K o – SV )¿
Depreciation = ¿
Depreciation = ₱249,793.49

Maintenance, Tax & Admin Cost = (2%*Benefit) + (12%*Benefit) + (5%*Benefit)

Maintenance, Tax & Admin Cost = (19%) (₱4,751,040.00) = ₱902,697.60

Total Cost = Depreciation + Maintenance, Tax & Admin Cost

Total Cost = ₱249,793.49 + ₱902,697.60 = ₱1,152,491.09

Benefit – Cost = ₱4,751,040.00 – ₱1,152,491.09 = ₱3,598,548.91

Cumulative = ∑ (B – C) = ₱42,712,322.77 + ₱3,598,548.91 = ₱46,310,871.67

386
 St. Anthony’s College
ENGINEERING AND TECHNOLOGY DEPARTMENT
San Angel, San Jose, Antique

Year 13 (Case 3)

(%) of Occupancy = 97%

Benefit = (% occupancy) (rate of rent) (no. of units) (12)
Benefit = 97% [(₱16,000.00) (4) + (₱17,000.00) (20)]×12 = ₱4,702,560.00

Depreciation = (K o – SV )¿
Depreciation = ¿
Depreciation = ₱249,793.49

Maintenance, Tax & Admin Cost = (2%*Benefit) + (12%*Benefit) + (5%*Benefit)

Maintenance, Tax & Admin Cost = (19%) (₱4,702,560.00) = ₱893,486.40

Total Cost = Depreciation + Maintenance, Tax & Admin Cost

Total Cost = ₱249,793.49 + ₱893,486.40 = ₱1,143,279.89

Benefit – Cost = ₱4,702,560.00 – ₱1,143,279.89 = ₱3,559,280.11

Cumulative = ∑ (B – C) = ₱46,310,871.67 + ₱3,559,280.11 = ₱49,870,151.78

Year 14 (Case 3)

(%) of Occupancy = 96%

Benefit = (% occupancy) (rate of rent) (no. of units) (12)
Benefit = 96% [(₱16,000.00) (4) + (₱17,000.00) (20)]×12 = ₱4,654,080.00

Depreciation = (K o – SV )¿
Depreciation = ¿
Depreciation = ₱249,793.49

Maintenance, Tax & Admin Cost = (2%*Benefit) + (12%*Benefit) + (5%*Benefit)

387
 St. Anthony’s College
ENGINEERING AND TECHNOLOGY DEPARTMENT
San Angel, San Jose, Antique

Maintenance, Tax & Admin Cost = (19%) (₱4,654,080.00) = ₱884,275.00

Total Cost = Depreciation + Maintenance, Tax & Admin Cost

Total Cost = ₱249,793.49 + ₱884,275.00 = ₱1,134,068.69

Benefit – Cost = ₱4,654,080.00 – ₱1,134,068.69 = ₱3,520,011.31

Cumulative = ∑ (B – C) = ₱49,870,151.78 + ₱3,520,011.31 = ₱53,390,163.08

Year 15 (Case 3)

(%) of Occupancy = 96%

Benefit = (% occupancy) (rate of rent) (no. of units) (12)
Benefit = 96% [(₱16,000.00) (4) + (₱17,000.00) (20)]×12 = ₱4,654,080.00

Depreciation = (K o – SV )¿
Depreciation = ¿
Depreciation = ₱249,793.49

Maintenance, Tax & Admin Cost = (2%*Benefit) + (12%*Benefit) + (5%*Benefit)

Maintenance, Tax & Admin Cost = (19%) (₱4,654,080.00) = ₱875,064.00

Total Cost = Depreciation + Maintenance, Tax & Admin Cost

Total Cost = ₱249,793.49 + ₱875,064.00 = ₱1,124,857.49

Benefit – Cost = ₱4,654,080.00 – ₱1,124,857.49 = ₱3,480,742.51

Cumulative = ∑ (B – C) = ₱53,390,163.08 + ₱3,480,742.51 = ₱56,870,905.59

388
 St. Anthony’s College
ENGINEERING AND TECHNOLOGY DEPARTMENT
San Angel, San Jose, Antique

(+NPV) 18%

B 1−C1
NPV =−K o + ¿¿

₱ 3,628,486.51
NPV =−₱ 16,920,807.57+
¿¿

NPV =₱ 2,384,833.75 ∴ (FEASIBLE)

B1
B=
¿¿

₱ 4,788,000.00
B=
¿¿

B=₱ 25,404,301.57

C
C=K o + ¿ ¿1

₱ 1,159,513.49
C=₱ 16,920,807.57+
¿¿

C=₱ 23,019,467.82

B ₱ 25,404,301.57
= =1.10
C ₱ 23,019,467.82

∴ 1.10>1 , FEASIBLE

(-NPV) 25%

B 1−C1
NPV =−K o +
¿¿

₱ 3,628,486.51
NPV =−₱ 16,920,807.57+
¿¿
389
 St. Anthony’s College
ENGINEERING AND TECHNOLOGY DEPARTMENT
San Angel, San Jose, Antique

NPV =₱ 326,054,833.1 0

IRR=% Rate of ¿
−₱ 688,532.21
IRR=18 %+ ×7%
−₱ 688,532.21+(|₱ 326,054,833.10|)
IRR=17.985 %

∴ 17.985% <18 , NOT FEASIBLE

390