ACKNOWLEDGEMENT

- MLD

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INTRODUCTION AND BACKGROUND OF THE STUDY

2
List of Abbreviations

3
List of Tables

Table 1.

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List of Figures

Figure 1.

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List Maps

Map 1.

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EXECUTIVE SUMMARY

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 SECTION 1
PROJECT SUMMARY

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1.1 Name of Project

1.2 Project Location

1.3 Descriptive Definition of the Project

.
Relation to the national program

.
Affinity to regional or sectoral studies

b) Places of employment

c) Transportation facilities

d) Nearby Establishment

Project Potential and Benefits

1.4 Objectives and Constraints of the Project

Objectives

Constraints

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1.5 Feasibility Criteria

1.6 Highlights of the project

1.7 Limiting Condition

1.8 Summary of the findings and conclusions

Market aspects

Technical aspects

Environmental aspects

Management aspects

Taxation and Legal aspects

Financial aspects

Socio-economic aspects

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 SECTION 2
ANALYSIS AND EXISTING CONDITIONS

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2.1 Market Study

2.1.1 Relevant market data

Population

Employment and Income

Education

Household

2.1.2 Definition of market area

Residential Subdivision

Transportation

Observation of the researcher

2.1.2 Demand

Macro Analysis

Micro-analysis

a) Income

b) Price

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c) Price of substitutes / alternatives

2.1.3 Supply Situation

Direct competitors

Historical Supply and absorption patterns

2.1.4 Demand-Supply Analysis

The market niche

2.1.5 Marketing Program

Types of marketing program

4 Ps

Product
Price
Place
Promotion

Table 2. 4Ps for the Project

Marketability

Marketing organization and cost

Marketing Cost Rate Subtotal

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 Brokers Commission Cost
Marketing & Sales Cost
Total Marketing Cost

Table 2. Projected Marketing and Sales Costs

2.2 Technical Study

2.2. 1. The Product

The Model Unit

Floor Plan

Specifications of improvement:

DHSUD requirement

PD 957 Standard – Open Enchanted Residences

Market (minimum) (minimum)
I BR
2 BR

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2.2. 2. Selection of Subdivision Site, Lot and construction costs

2.2. 3. Construction Stages

2.2.4 Project and Construction Schedule

2.2.5 Utilities

2.2. 7. Technical Cost Summary

HARD COST Area / No. Unit Cost Subtotal

Construction Cost
Land Cost
Subtotal Hard Cost

2.2.8 Environmental Impact

2.3 Legal and Taxation Study

2.3.1. Taxation

Tax Code provisions affecting the industry

.
LGU Code
Other Government Agencies
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2.4.2. Legal aspects affecting Project

Conformance with zoning regulations

Government permits

Other expenses involved

Tax and Legal Cost Summary

SOFT COST Percentage   Subtotal

Professional Fees
Business Registration and Permits
Title Transfer
Contingency
Subtotal Soft Cost

2.4 Organization and Management Study

2.4.1 Basic Consideration

2.4.2. Form of Ownership

2.4.3 Organizational Chart

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Task for each Department

Recruitment

Compensation, Honorarium and Fees

2.4.5 Management and Organization Cost Summary

Organization and Management Subtotal

Salaries and Wages

SSS, PIF, PHIC
Total

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2.5. Financial Study

2.5.1. Major Assumptions

2.5.2 Total Project Cost

Marketing Cost Rate Subtotal

(In Pesos)
Brokers Commission Cost
Marketing & Sales Cost
Total Marketing Cost

HARD COST
Lot Cost
Construction Cost
Subtotal Hard Cost

SOFT COST
Professional Fees
Business Registration and Permits
Title Transfer (1&2)
Contingency
Subtotal Soft Cost

Subtotal

Organization and Management

Salaries and Wages
SSS, PIF, PHIC
Total

Loan and Interest

Interest Expense
Principal Borrowings
Subtotal

Total Cost

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2.5.3 Sources of Project Financing and Working Capital

2.5.4 Preparation of Financial Statements

Projected Income Statement

.
Enchanted Residences
Projected Income Statement
For the Year Ended December 31
Year 1 Year 2 Year 3
Revenue
Sales

Total Revenue

Cost of Sale
Land
Building Const.
Commission
Expense
Sales and
Advertising
Total Cost of Sale

Gross Profit

Operating Expense
Salaries and Wages
Expense
Professional Fees
SSS, PIF, PHIC
Government Permits
Title Transfer
Contingent Expenses
Total Operating
Expense

Operating Income

Non-operating
Expense
Interest Expense

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Income Before Tax

Income Tax 30% or

2%

Net Income after

Tax
Net Income,
Cumulative

Projected Balance Sheet

Enchanted Residences
Projected Balance Sheet
For the Year Ended December 31
Year 1 Year 2 Year 3
Assets
Current Assets
Cash
Inventory
Total Assets

LIABILITIES AND STOCKHOLDER'S EQUITY

Liabilities
Construction Wages
Interest and Principal
Commission Payable
Sales and Marketing
Other Payables
Total Liabilities

Stockholder's Equity
Share Capital
Retained Earnings Cum
Dividend Paid
Total Owner’s Equity

Total Liabilities and SH

Equity

Profitability Net Income After / Sales = Net Profit Margin

Tax

1st year

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 2nd year

3rd year

Table 2. Net Profit Margin

Profitability Net Income / Stockholders’ = Return on

Equity Stockholders’
Investment

1st year

2nd year

3rd year

Total

Liquidity Current Assets / Current Liabilities = Current Ratio

     
1st year
 
2nd year
 
3rd year

Projected statement of cash flow

Enchanted Residences
Projected Statement of Cash Flows
For the Year Ended December 31
Cash flows from Year 1 Year 2 Year 3 Total
operating activities
Cash received from
customers

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 Cash Paid for
Salaries and Wages
Cash Paid for
Professional Fees
Cash Paid for SSS,
PIF, PHIC
Cash Paid to
Government agencies
Cash Paid for Title
Transfer
Cash Paid for
Commission Fees
Cash Paid for sales
and Marketing
Activities
Cash Paid for Income
Taxes
Contingent Expenses

Net cash used in

operating activities

Cash flow from

investing activities
Cash paid for Lot
Purchases
Cash paid for House
construction

Net cash used in

investing activities

Cash flows from

financing activities
Cash received from
issuing shares
Cash received from
Notes Payable
Cash Paid for
Dividends

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 Cash Paid for
borrowings

Net cash used in

financing activities

Cash Balance, Ending

Cash Beginning
Cash Ending
Cumulative

Decision Criteria

1) Net Present Value

Y1 Y2 Y3 = Net
Cash Flow Cash Flow Cash Flow Less Cash
Present
Outlay
(1+i)^1 (1+i)^2 (1+i)^3 Value
Revenue
(1+8%)t
Total

Revenue
(1+10%)t
Total

2) Internal Rate of Return

Initial Year 1 Year 2 Year 3 Guess IRR

Cash CF1 CF2 CF3 Rate
Outlay (For
Excel)

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2.6 Socio-Economic Study

2.6.1 Contribution and Impact of the project

Government Income Amount

Government Permits
Title Transfer
Income Taxes
Total
 
Social Contribution
SSS, PIF, PHIC
Salaries and Wages
Professional Fees
Construction Fees
Commission Releases
Total
   
Grand Total

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 SECTION 3
EVALUATION AND ATTACHMENTS

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3.1 Conclusion and Recommendation

3.1 Annexes

3.3 Bibliography

3.4 Resume

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