1

CHAPTER I
INTRODUCTION
Apartment is a dwelling unit especially one that is spacious, home-liked and
well-furnished place and used as living accommodation. It is a place where one
can also meet other people with different backgrounds, attitudes, and beliefs.
Living in an apartment is comfortable and unforgettable for families and
employees, because they consider this place as a home that helps them grow and
mature, be independent, and mold their personality. There are given freedom to
hangout and a chance to adapt the values of others. And will learn how to value
and be responsible on their own things and belongings.
Being a first class Municipality in the 1 st District of Cotabato Province,
people find Midsayap as a place that serves as the center of commerce and trade
where there are business opportunities, good education and recreation, with
civilized, hospitable, and cooperative residents. It is noted that many business
establishment are growing because employees are encourage to work in public
and business entrepreneurs in the area.
Therefore, the establishment of 2-strorey apartment, situated near the
schools and business firms, in the Municipality of Midsayap would cater the need
for quality and safe housing for those living outside the said Municipality. Working
resident aliens and families who have not built a home yet are the main customers
of the business.

Furtheremore, this study is looking at a possibility of working individuals

assuring them security, quality service, affordable and safe housing.

ASSUMPTIONS OF THE STUDY

This study aims to determine whether it is financially feasible to build a 2storey apartment with 30 rooms within the Municipality of Midsayap. It is also
based on the following assumptions:
1. The proposed project site is one thousand ninety square meters (1090sq.m)
lot located along Dilangalen Street poblacion 6, Midsayap, North Cotabato.
2. The lot has a clean title owned by the Ong family.
3. The owner would like a build 2-storey apartment. The 2-storey apartment
will have spacious rooms with kitchenette, living area, dining area and a
bathroom. Garage will also be designed for the convenience of the tenants
to park their vehicles.
4. The owner will acquire P 7,950,000 commercial loan from a bank that will be
used for the construction of the apartment.
5. The average commercial loan lending rate in banks is 9% annually by using
diminishing method.

BACKGROUND OF THE STUDY

The projected population by barangay in 2012 of the Municipality of

Midsayap is 137,035 based on the statistical data given by the Municipal Planning
Development Office (MPDO). The demand for apartment, boarding, lodging and
pension houses in the locality are rapidly increasing. The local government is
planning for urban development to cater the demand of people residing within and
outside municipality.
In order to sufficiently cater demand, apartment became a profitable
business. Thus, the proponent of this study would like to present that there is
viability of establishing an apartment in the locality of Midsayap.

OBJECTIVES OF THE STUDY

The main objective of the study is to determine the feasibility of establishing
a 2-storey apartment in the Municipality of Midsayap.
Specifically, the proponents of this study would like to:
1.
2.
3.
4.

Provide quality service among tenants;

Gain customers loyalty through making it unique among other aparments;
Help, promote and develop the economic status of Midsayap; and
Determine the cost and profitability of operation.

RATIONALE OF THE STUDY

In the Municipality of Midsayap, there has been an increase of families and

working public. These are indicators that the Municipality improves its status and
facilities towards cityhood. These developments will definitely bring need for safe,
livable, affordable and comfortable housing for people.
The proponents of this study believe that establishing an apartment will be a
great help to the families who have not built their home yet, and working idividuals.
The proposed site is near the St. Agnes Residence Hall which is one of the
competitors along Dilangalen Street, Pob. 6, Midsayap, Cotabato. Yet, it has
smaller rooms compared to the spacious rooms that the proposed apartment will
have. It is near the schools and business establishments. The proposed project will
be named GREENHOUSE. It is called GREENHOUSE because the building is
basically designed to provide a comforting, spacious and more relaxing abode for
families, students, travelers, backpackers and tourist. The primary target of this
apartment will be students, specifically the incoming college freshmen since they
are considered the unsupplied market. Aside from students, it will also cater to
employees and non-residents workers of Midsayap.

CHAPTER II
MARKETING FEASIBILITY

The purpose of the marketing feasibility study is to determine the

sustainability of this property for profitable development and to determine the
market area and the target market.
A. PRODUCT DESCRIPTION
This project is said to provide quality service to the target market.
The purpose of this project is to provide an ideal place for living where they
can stay, study, and relax comfortably and conveniently. It will offer
consumer food services and garage area for every tenant. It has living and
dining area each room.
B. BRIEF PROFILE OF MARKET AREA
The market focuses on the PPALMA (Pikit, Pigcawayan, Aleosan,
Libungan, Midsayap and Alamada) and the neighboring municipalities in
Region XII including part of Region XI.
1. GEOGRAPHY
Midsayap is geographically located at the Southwestern portion of
Cotabato Province. It lies on 12432 East longitude and 711.5 North
latitude. It is bounded on the North by the Municipality of Libungan; at the
South by the Rio Grande de Mindanao; at the East by the municipalities of
Aleosan and Pikit; and at the West by the Municipality of Kabuntalan.
Midsayap is approximately 47 kilometers away from Cotabato City
and some 174 kilometers from Davao City, two of the major urban centers in
Mindanao. It is about 64 kilometrs away from Kidapawan City, the seat of
the Provincial Government. Midsayap has a total land area of 33,038.7869
hectares comprising 57 barangays which is 5.03% of the total land area of
Cotabato Province. Some of the barangays (Southern and Western part)

are along the big bodies of water, thus making it accessible for water
transportation.
2. ECONOMY
Characterized to have a clay type of soil that is best suited for
agricultural use, most (42.03%) of the towns land area are devoted to
agricultural production. The lowland areas were planted with rice and other
seasonal crops while the upland areas were planted with permanent crops.
Agricultural products of the town include rice, corn, mango, coffee, coconut,
banana, vegetable and root crops.
Aside from the thriving agriculture industry, Midsayap also boasts of
its other industries such as cut flowers and ornamentals plants, livestock
and poultry, furniture and decorative crafts and telecommunications. It is
also a potential area for putting up other industries such as fruit and meat
processing as well as oil palm plantation and processing.

Strategically located, Midsayap serves as a major commercial and

trading center of the province where framers from neighboring municipalities
bring their agricultural products to be sold/trade. Midsayap is said to be the
center for business and economic activities for it is considered as the first
class municipality that blooms in terms of commerce and trade.
3. POPULATION

The Municipality of Midsayap posted an average population increase

of 1.92% annually. For the year 2010, it has projected population of 123,324
and a recorded income of Php 90,920,404.50 in the year 2008. As of August
2007 Midsayap household comprises of 29,042 with an average of 4.95 or 5
persons per household.
4. COMMUNICATION
Midsayap is at average with industrialized cities. The Philippine Long
Distance Telecommunication is active for more than three decades, the
three big communication lines - Smart, Globe and Sun Cellular had already
established its communication sites. Internet services are also means of
communication here in Midsayap.

5. TRANSPORTATION
The means of transportation in the area are jeepneys, tricycles and
motorcycles commonly known as dagit-dagit and paying-payong.
Jeepneys are used to cater or accommodate the people living in distant
barangays as well as to tow farm products to and from the town.
There are buses of the North Cotabato Transit Corporation/Weena
and air conditioned vans that regularly travel with Cotabato City and Davao
City route via Midsayap to cater the people living in the nearby
Municipalities.
6. BRIEF DESCRIPTION OF PPLAMA COMPLEX
PPALMA Complex is an organization composed of six municipalities
in the first district of North Cotabato namely: Pikit, Pigcawayan, Aleosan,
Libungan, Midsayap and Alamada. In terms of advancement in technology,

progressive municipalities are supporting each other in implementing

programs for the advancement and well-being of the people.
7. DEVELOPMENT
Midsayap is a rapidly developing midpoint of the province. It is now
considered as the center of trade, commerce and education catering the
nearby municipalities. The mounting of distinct business and the presence
of cumulative number of colleges in Midsayap attracts populace that will
need a safe and comfortable home-liked place to stay in. So the business of
apartment is considered favorable
8. PEACE AND ORDER
Generally, the Municipality of Midsayap is experiencing the tranquility
of peace based on our interview with the local police department. The minor
criminalities that happened in the whole Municipality do not affect the totality
of peace and order in Midsayap because they immediately respond and
solve it.
C. TARGET MARKET
The vital target markets of GREENHOUSE apartment are the families and
far-off individuals, and working personnel who are from distant places and families
who have not built their own home yet. [Secondary and tertiary students from
different schools - Notre dame of midsayap College, Southern Christian College,
Midsayap Community College, St. Jude College of Science and Technology,
Cotabato Medical Foundation College Inc., I-link College of science and
Technology and some other schools can occupy the said apartment]. These are
the native citizen of the neighboring towns and provinces of Midsayap or they are

the so - called Aliens since they came from other home to stay on. Hence, the
proposed apartment is located in an accessible area.
D. DEMAND SITUATION
Historical Demand
The proponents cite only three of the most occupied and populated
boarding houses and dormitories in the Municipality of Midsayap; that could
determine the demand already present in the said three boarding houses
and dormitories. These are the following: NDMC Ladies Dormitory, Baclig
Boarding House, and St. Agnes Residence Hall. These dormitories and
boarding houses are fully occupied by students and employees. Whereas,
other customers get discouraged in occupying the above mentioned
dormitories and boarding houses because of its many years of operation
without having further development and renovations. For these reasons, the
incoming College freshmen students and employees are the target
occupants and tenants of the said apartment.
Projected Demand
The municipality of Midsayap posted an average population increase
of 1.29% annually. This data was studied properly by the office concerned.
With these data, the study assumes that part of the increase of the
population is the increase of student population and workers. The student
population growth rate is assumed to be 20% while the number of graduate
per year varies so the study assumes that an average of about 10% of the
student population graduate annually. The office workers, non-residents and
families population and will be consider as its primary target market.
E. SUPPLY SITUATION

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Historical Supply
Apartment is a favorable enterprise in a municipality where the
demand is high and the continuing increase in target market which is not yet
served by the existing players.
Lists and profile of existing dormitories and boarding houses present in the town:
1. NDMC Ladies Dormitory
This dormitory is located at NDMC campus catering NDMC female students
who are living outside Midsayap. It consists of 22 rooms, rented for P500 per head,
inclusive of water and electric bills. Numbers of occupants depend on the size of
the room. It can accommodate four, six or even eight persons. The management
does not collect cash but rather accounts are charged to tuition for students and
pay slips for the personnel. Security is on duty 24/7 at the gate of the school who
are strictly following the rule of curfew hour at 10 PM.
2. St. Agnes Residence Hall
It is a residential apartment located at Pob.6, Midsayap Cotabato. It has
three types of units with different conformation. Two units are allotted for bed
spacing wherein each occupant is P600 per head in a room for three persons,
where electric and water bills are exclusive. One unit is allotted for family use or
studio - typed and is rented for P2, 800, electric and water bills per month are
exclusive.
3.

Baclig Boarding House

It is a residential building located at Pob.5, Midsayap, Cotabato. Its rooms

are composed of two-man, three-man and four-man room. Each room is rented at

11

P500 per head. The owner requires two-month deposit plus one month advance as
an initial payment which includes payment for electric and water use. Extra
charges are imposed on appliance such as television which are imposed on
appliances such as television which are charged P300 per month and computer for
P500 per month.
Projected Supply
The proposed project aimed to maintain and provide housing
accommodation to working individuals, families and other tenant within and
outside the Municipality. Since the demand is high and other existing target
market is not yet served there will be an expansion of the apartment to cater
them. Other tenants will tend to transfer to GREENHOUSE Apartment.
F. DEMAND-SUPPLY GAP ANALYSIS
To evaluate the feasibility of the project, the demand and supply must be
carefully studied. Thus, the gap between the two must be resolved.
Based on the projections, the projected supply of working individuals,
families housing is inadequate for the vast demand for housing. Even those who
already have their boarding houses will tend to transfer to Greenhouse apartment
due to distinguished services and affordable housing accommodation.
For a business to prosper, difference between demand and supply must be
significant. Therefore, the Greenhouse apartment will be able to address the need
for this insufficiency.
G. PRICING
The prices for the services are determined first and foremost by the market,
the competition, and the personality types of consumers.
1. Greenhouse Apartment will have 2-storey Apartment that will be
rented out as a room. The rental rate of the Apartment is P8, 000 per
month.

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2. Deposit Scheme:
The apartment will apply a uniform deposit scheme for the room. All
will be required one month and one month advance. Water and
electric usage are exclusive.
H. MARKETING PROGRAM
The Greenhouse apartment as a foremost apartment in Midsayap, Cotabato
provides safe, unique and quality housing services. It offers complete satisfaction
to all its tenants. Consumer and food services are also available within the
apartment vicinity. They also have an intended area for the visitors and a smoking
area for those who smoke.

I. MARKETING OBJECTIVES
a. Long Term
To generate revenue of at least P4, 147,200 on the 3 rd year of
operation.
b. Short Term
To generate revenue of at least P 2, 880, 000 on the first year of
operation and 20% increase annually.
c. Projected Sales Revenue
There are two major sources of revenue: the rental income from the
30 units is being leased out. A total more or less P2, 880, 000 revenue from
the major source is expected to be obtained every year, subject to 20%
increase every year. (Please see schedules on revenue for the computation
and analysis.)
d. Marketing Strategy

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Market will be penetrated through local radio and television

advertisement and the strong connections with the business firms and
educational institutions by giving flyers and posting print ads.
e. Competitive Edge
The main objective of the study is to establish the services that will
make the apartment different and unique compare to other apartments,
dormitories and board and lodging houses. One of its edges is having a
security guard for the safety of the boarders and tenants. Maintenance on
the area and the facility will be done regularly. There will also be safety
policies and an environment friendly atmosphere that is good for relaxation
and where every student and family will have their own privacy. We also
have a living and dining spacious area. And we established good
relationship between our tenants.
f.

Possible Fringe Benefits

The

main

benefit

of

Greenhouse Apartment

is

lesser

the

transportation cost of their tenants. It is walking distance to the institutions

and business firms they are working with. Aside from that, they can assure
the protection of their personal belongings. The apartment is open for
visitors to maximize their quality time. The families of students and other
tenants who visit will be properly accommodated.
g. Promotion

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Being a unique apartment that offers various services like garage,

living and dining area and will be no difficulty as to how to promote the
business. We have a strong alliance and connections to schools and
business firms that is one of the instruments to persuade target markets.
Regular radio advertisement and word of mouth promotion can also be
tools, and most, of all through internet.

CHAPTER III
TECHNICAL FEASIBILITY
Service Description
The proposed project will strive to give the tenants the best service
accommodation that exceeds customer satisfaction.
Multi-Purpose Garage
The tenants who have vehicle like cars, motorcycles or bicycles are
provided with garage. For those who have no vehicles, different members of the
tenants family can try to use them for different purposes. This helps in having
additional options available during extra room urgencies. The kids could use this
particular part of the apartment as their own playing area. Teenagers could convert
this specific area to have their dance and musical practices done.
Other services and facilities

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The residence area are fenced to make the tenants secured from theft, in
drying washed clothings and beddings, visiting area, and everything. The
Greenhouse Apartment is said to be a place like home, where everything will be
provided to attain customer pleasure and patronage.
Apartments Policies and Rules
These policies and rules are categorized into three: noise and conduct,
cleanliness and trash, and safety. The following must be observed by the tenants:
NOISE AND CONDUCT: Tenants shall not make or allow any disturbing noises in
the unit by Tenant, family or guests, nor do, nor permit anything by such persons,
which will interfere with the rights, comforts or conveniences of other persons. All
musical instruments, television sets, stereos, radios, etc., are to be played at a
volume which will not disturb other persons. The activities and conduct of Tenant,
Tenants guests and minor children of Tenants or guests, outside of the unit on the
common grounds, parking areas, or any recreation facilities must be reasonable at
all times and not annoy or disturb other persons. No lounging, visiting or loud
taking, that may be disturbing to other Tenants will be allowed I the common areas
at any time.
CLEANLINESS AND TRASH: The unit must keep clean, sanitary and free from
objectionable odors. Tenant shall assist management in keeping the outside
common areas clean. No littering of papers, cigarette butts or trash allowed. No
trash or other materials may be accumulated which will cause a hazard or be in
violation of any health, fire or safety ordinance or regulation. Garbage is to be
placed inside the containers provided and lids should not be slammed. Garbage
should not be allowed to accumulate and should be placed in the outside

16

containers on a daily basis. Furniture must be kept inside the unit. All personal
belongings must be kept inside the unit, or in storage areas approved in writing by
Landlord/Manager. Tenant may be charged for the cost of removal. Clothing,
curtains, rugs, etc. shall not be shaken or hung outside of any window ledge.
SAFETY: All doors must be locked during the absence of Tenant. All appliances,
except refrigerators, must be turned off before leaving the unit. When leaving for
more than five (5) days, Tenant shall notify management how long Tenant will be
away. If someone is to enter Tenants unit during Tenants absence, Tenant shall
give management permission beforehand to let any person in the unit and/or
provide the name of person or company entering. The use or storage of gasoline,
cleaning solvent or other combustibles in the unit is prohibited. Children on the
premises must be supervised by a responsible adult at all times. Candles may not
be burned in bedrooms. Candles used in common areas must be attended at all
times. Failure to follow such rules will be subjected to sanctions and maybe
expulsion from the apartment.
MAINTENANCE:

Aside from the tenants who would be responsible for the

maintenance of their respective apartment and room facilities, the business owner
will outsource personnel who will do the main maintenance, repairs, security,
installation and cleaning vicinity.
To keep the vicinity clean and maintained, garbage cans, soft brooms, dust
pans and stick brooms are available in each room, wherein the segregation is
biodegradable, non-biodegradable and recyclables wastes should be followed.
Three big garbage cans will be provided in front of the gate where the
tenants are required to throw their own garbage and trashes to the said big cans at
a proper garbage throwing time. The three big cans are labeled in color: black for

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biodegradable, green for non-biodegradable and red for recyclable. The

biodegradable and non-biodegradable garbage will be collected by the garbage
collectors assigned by the Municipality of Midsayap and the recyclables such as
empty bottles can be sold and the income will be for the beautification of the area.
Failure to follow such rules will be subjected to sanctions and maybe expulsion
from the apartment.

CHAPTER IV
MANAGEMENT AND ENVIRONMENTAL STUDY
The Greenhouse Apartment is an environment friendly apartment. It would
not destroy the nature, because the vicinity is surrounded by ornamental flowering
plants, and trees that prevent flood and soil erosion. There will be proper drainage
system and waste disposal system so that no foul or odorous and harmful effects
will occur.
The organizational set-up is presented with three personnel involved: the
manager/owner, one security guard and one maintenance personnel. They will be
in charge of taking care and administering the daily operations of the business.

18

ORGANIZATIONAL STRUCTURE

MANAGER/OWNER
ONE SECURITY
GUARD

Figure 1. Organizational Chart

MAINTENACE
PERSONNEL

Job Description and Qualifications

a. Manager/Owner
The owner is also the manager of the project. He will be responsible
for the capital, accountable for the risks and damages and for any liabilities
that may arise during the construction and after the business has been
established. The owner will finance the total project cost P15, 900, 000.
The manager is assumed to be competent in managing the business,
wise decision maker and financially capacitated. The owner is businessoriented person.
b. One Security Guard
He will be in charge in the total security of vicinity the whole
apartment. Since fence surrounds the area, there is no trouble of
safeguarding the compound. The security guard will be outsourced from an
agency, thus making the business no obligation on the trainings and
benefits to him. The security guard will be given P6, 000 per month.
Qualifications of the personnel will be set by the outsourcing agency.
c. One Maintenance Personnel
The maintenance personnel is responsible maintaining, repairing and
cleaning the surroundings, except the occupied apartments/rooms. Any

19

empty rooms will be checked before admitting new tenants. He will be

working at least twice a week, call him if his services are needed for special
occasions. He will be hired and paid at least P4, 500 per month.
CHAPTER V
FINANCIAL FEASIBILITY
In this section all the financial matters will be discussed and shown such as
financial implications and conditions of the proposed project, sources of capital or
initial capital requirements, cost of the operations and its profitability. Also,
projected financial statements including, but not limited to statement of financial
position, statement of comprehensive income, statement of cash flows, statement
of equity and notes to financial statement and other explanatory materials.
1. TOTAL INITIAL CAPITAL REQUIREMENT
Cost of land------------------------------------------------------------------ P6, 000,000
(cost include the purchase price, legal fees, fees for registration and
transfer of title, unpaid taxes up to date of acquisition assumed by the
buyer, cost of survey, cost of improvements such as cost of grading,
leveling and landfill).
Cost of building------------------------------------------------------------- P9,000, 000
(cost include the raw materials used, labor employed and overhead
incurred during construction building permit, architect fee, superintendent
fee, cost of extraction, cost of temporary buildings used as construction
offices and tools or materials shed, interest on construction loans and
insurance, cost of services
equipment and fixtures made a permanent part of the structure, cost of temporary
safety fence around the subsequent removal thereof and safety inspection fee.)
Cost of land and building improvements
Including initial working capital
and
pre-operating
cost---------------------------------------------------------------P900,000
Total initial capital requirements-----------------------------------------------P15,900,000
2. SOURCES OF FINANCING THE PROJECT

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The proposed project will be a partnership ownership and managed by the

members; they required putting up initial cash capital for the business venture, the
total initial capital required is P15, 900,000. Fifty percent (50%) will be financed by
the associates and other half will be sourced externally from a financial institution
with diminishing interest of 12% annually for 10 years. Payments of amortization
will be made at the end of each year amounting to P795, 000 exclusive of interest.
3. FINANCIAL ASSUMPTIONS:
a) Total starting capital of the project is P15,900,000. The P9,000,000 will be
spent for building and land acquisition.
b) Straight line method is used in the computation of depreciation of property
and facilities with 15 years useful life for Land Improvements; 30 years
useful life for Building - Apartment.
c) Operating expenses are assumed to increase by 10% in the succeeding
years.
d) Major sources of income are rental income from apartment being rented.
e) All other assumptions are discussed in the Notes to Financial Statement.

21

22

GREEN HOUSE APARTMENT

STATEMENT OF FINANCIAL POSITION (PROJECTED)
For the Three-Year Period
Year 1
Assets
Current Assets
Cash on Hand (see S.C.F.)
Merchandise Inventory (see note 3)
Total Current Assets
Non-Current Assets
Store Equipment Refrigerator
Store Equipment - Cashiers Calculator
Furniture and Fixtures
Building Apartment
Building & Land Improvement
Less: Accumulated Depreciation (see note 12)
Total Property and Equipment
Land
Total Noncurrent Assets
Total Assets
Liabilities & Equity
Non-Current Liabilities
Loan Payable
Total Liabilities
Owners Equity
Initial Capital (see S.O.E.)
Net Income (see S.C.I)
Total Owners Equity

Year 2

Year 3

1,610,650.00
110,000.00
1,720,650.00

1,891,015.00
132,000.00
2,023,015.00

2,297,817.00
146,300.00
2,444,117.00

19,000.00
2,500.00
30,000.00
3,000,000.00
163,500.00
152,917.00
3,062,083.00
1,090,000.00
4,152,083.00
5,872,733.00

19,000.00
2,500.00
30,000.00
3,000,000.00
163,500.00
305,834.00
2,909,166.00
1,090,000.00
3,999,166.00
6,022,181.00

19,000.00
2,500.00
30,000.00
3,000,000.00
163,500.00
458,751.00
2,756,249.00
1,090,000.00
3,846,249.00
6,290,366.00

2,700,000.00
2,700,000.00

2,400,000.00
2,400,000.00

2,100,000.00
2,100,000.00

2,753,500.00
419,233.00
3,172,733.00
5,872,733.00

3,172,733.00
449,448.00
3,622,181.00
6,022,181.00

3,622,181.00
568,185.00
4,190,366.00
6,290,366.00

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GREEN HOUSE APARTMENT

STATEMENT OF COMPREHENSIVE INCOME (PROJECTED)
For the Three-Year Period

Gross Sales
Rental Income
Total Revenue
Less: Cost of Sales
Purchases
Add: Inventory Beginning
Cost of Goods Available for Sale
Less: Inventory End
Cost of Sales
Gross Income
Less: Operating Expense
Salaries and Wages
Light & Water
Office/Store Supplies
Permits and Licenses
Communication
Promotion Expenses
Repair & Maintenance
Miscellaneous Expense
Depreciation
Total Operating Expense
Interest Expense
Total Expense
Net Income

(note 1)
(note 2)

(note 3)
(note 4)
(note 5)
(note 6)
(note 7)
(note 8)
(note 9)
(note 10)
(note 11)
(note 12)
(note 13)

Year 1
1,320,000.00
720,000.00
2,040,000.00

Year 2
1,452,000.00
792,000.00
2,244,000.00

Year 3
1,597,200.00
871,200.00
2,468,400.00

1,100,000.00
1,100,000.00
110,000.00
990,000.00
1,050,000.00

1,210,000.00
110,000.00
1,320,000.00
132,000.00
1,188,000.00
1,056,000.00

1,331,000.00
132,000.00
1,463,000.00
146,300.00
1,361,700.00
1,151,700.00

72,000.00
24,250.00
1,000.00
2,500.00
5,400.00
2,500.00
9,200.00
1,000.00
152,917.00
270,767.00
360,000.00
630,767.00
419,223.00

79,200.00
26,675.00
1,100.00
2,750.00
5,940.00
2,750.00
10,120.00
1,100.00
152,917.00
282,552.00
324,000.00
606,552.00
449,448.00

87,120.00
29,342.00
1,210.00
3,025.00
6,534.00
3,025.00
11,132.00
1,210.00
152,917.00
295,515.00
288,000.00
583,515.00
568,185.00

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GREEN HOUSE APARTMENT

STATEMENT OF CASH FLOWS (PROJECTED)
For Three-Year Period

Pre-Operating
Cash Inflows
Cash Balance, Beginning
Total Revenue
Initial Capital
Loan Proceeds
Total Inflows
Less: Cash Outflows
Purchases
Furniture & Fixtures
Store Equipment Refrigerator
Store Equipment - Cashiers Calculator
Land Improvements
Building Apartment
Land
Accounts Payable:
Loan Principal
Operating Expense, excluding depreciation
Total Outflows
Cash Balance, Ending

Year 1

Year 2

Year 3

0
0
2,753,500.00
3,000,000.00
5,753,500.00

1,448,500.00
2,040,000.00
0
0
3,488,500.00

1,610,656.00
2,224,000.00
3,854,650.00

1,891,015.00
2,468,400.00
4,359,415.00

0
30,000.00
19,000
2,500
163,500
3,000,000.00
1,090,000.00

1,100,000.00
0
0
0
-

1,210,000.00
-

1,331,000.00
-

0
0
4,305,000.00
1,448,500.00

300,000.00
477,850.00
1,877,850.00
1,610,650.00

300,000.00
453,635.00
1,963,635.00
1,891,015.00

300,000.00
430,598.00
2,061,598.00
2,297,817.00

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GREEN HOUSE APARTMENT

STATEMENT OF OWNERS EQUITY (PROJECTED)
For the Three-Year Period

Capital Beginning
Net Income
Capital Ending

Year 1
2,753,500.00
419,233.00
3,172,733.00

Year 2
3,172,733.00
449,448.00
3,622,181.00

Year 3
3,622,181.00
568,184.00
4,190,365.00

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GREENHOUSE APARTMENT
Notes to Financial Statements
Year 1 to 3
Note 1: Rental Income
30 rooms x P8000/room x 12 months = 2,880,000
It is assumed that there is an increase of 20% of rental income every year.
Note 2: Permits and Licenses
Yearly budget permits, licenses and other regulatory requirements is
P15,000 and will increase 10% annually.
Note 3: Light and Water
Light and water include electricity and water bills.
Water 200 x 30 rooms = 6,000 x 13 = 78,000
Light 1200 x 30 rooms = 36,000 x 13 = 468,000
Note 4: Office Supplies
Office supplies include official receipt, staplers, bond papers, books of
accounts, ball pens, and cash vouchers, tags, scotch tapes and plastics bags. The
annual budget is P6,000 and be subject to 10% increase yearly.

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Note 5: Communication
PLDT bill monthly is P29,700. 10% increase every year is assumed.
Note 6: Promotion Expense
Promotion on radio and other media and marketing expenses are budgeted
at P75,000 per year and subject to increase by 10%.
Note 7: Repair and Maintenance Expenses
Repairs and maintenance expenses will be used when there will be
deterioration and dilapidation of the property and facilities. An amount P150,000 is
set aside for such kind of expenditure in the first year of operation and increase of
10% every year.
Note 8: Miscellaneous Expenses
All other expenses not specifically started will fall under miscellaneous
expenses. P45,000 is allocated for this purpose and an increase of 10% every
year will be set aside for some purpose.
Note 9: Schedule of Depreciation

Particulars

Unit Cost

Date
Acquired

Building
Apartment
Land and
Improvement
s
GRAND
TOTAL

P9,000,000

Y1

30

Acquisition
Constructio
n Cost
P9,000,000

P900,000

Y1

15

P900,000

P60,000

P900,000

P360,000

P9,900,000

Estimated
Useful Life

Yearly
Depreciatio
n
P300,000

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Note 10: Schedule of Loan Amortization

9% = 10 years
Year
1
2
3
4
5
6
7
8
9
10
GRAND
TOTAL

P7,950,000

Payments as
to Principal
P795,000
P795,000
P795,000
P795,000
P795,000
P795,000
P795,000
P795,000
P795,000
P795,000

Payments as
to Interest
P715,500
P643,950
P572,400
P500,850
P429,300
P357,750
P286,200
P214,650
P143,100
P71,550

P7,950,000

P3,935,250

Total
Loan Balance
Payments
P1,510,500
P7,155,000
P1,438,950
P6,360,000
P1,367,400
P5,565,000
P1,295,850
P4,770,000
P1,224,300
P3,975,000
P1,527,500
P3,180,000
P1,081,200
P2,385,000
P1,009,650
P1,590,000
P938,100
P795,000
P866,550
0.00
P11,885,250

The loan amount for a total of P7,950,000 will be paid in 10 years, with fixed
amortization P795,000, exclusive of diminishing interest of 9% based on the loan
balance.
Hence, the business will be paying P11,885,250 total maturity value of the
amount borrowed.

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CHAPTER VI
SOCIO-EONOMIC FEASIBILITY
ECONOMIC ENVIRONMENT
Midsayap is a pulsating with life, activity and vigor municipality located in
the rapidly growing Northern part of the Cotabato area and has a robust economy,
attractive residential development, exciting commercial and business growth.
Midsayap has the amenities necessary for ensuring a quality lifestyle. The fact that
Midsayap is a part of a vibrant metropolitan area makes it very attractive place to
live and establish a business.
The proposed business establishment will help improve the socio-economic
status of the people of Midsayap by way of providing opportunities and by
developing and prospering trade of goods in the locality.
POLITICO-LEGAL
The proposed business will act in accordance with the political and legal
aspect of the government by securing the following permission: Department of
Trade and Industry (DTI), sanitary, mayor/business permits, and it will be
registered at the Bureau of Internal Revenue District office located at Midsayap,
Cotabato. By way of conforming to its legal obligations, the business
establishments can give its employees just salaries and essential benefits and will
contribute to the fast growing economy of Midsayap by way of paying its taxes.

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SOCIO-CULTURAL
The proposed project can contribute to the growth of the community by
paying its taxes to generate profit. It can also provide better opportunities to the
individuals. In this regard, people tend to be more active in their work since it is for
the betterment of their community.
TECHNOLOGICAL
The assessment is based on an outline design of system requirements in
terms of input, processes, output, fields, programs, and procedures. This can be
quantified in terms of volumes of data, trends, frequency of updating, etc. in order
to estimate whether the new system will perform adequately or not. Technological
feasibility is carried out to determine whether the proponents have the capability, in
terms of software, hardware, personnel and expertise, to handle the completion of
the project.
The concern is whether the proposal is both technically and legally feasible.
ENVIRONMENTAL MITIGATING MEASURES
Responsible in promoting environmental sanitation, clean air act and proper
waste disposal by providing garbage cans for non-biodegradable, biodegradable
and recyclables.

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MULTIPLIER EFFECTS
Proposed business will eventually become profitable and progressive that
would bring economic benefits to the Municipality of Midsayap like providing
employment and socio-economic progress.

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CHAPTER VII
SUMMARY OF FINDINGS
The Greenhouse Apartment is a home-liked place. It consists of 30 units
with two bedrooms, a private comfort room, kitchenette and a living room.
There is a high demand for the housing accommodation in the area since
Midsayap is the center of commerce, agriculture and education. The existing
apartments could not cater anymore the incoming customers, mostly the
unsupplied market - the freshmen college students, working individuals and
families who have not built their permanent home yet. This makes the project
favorable and promising.
The 2-storey apartment can accommodate number of occupants per
apartment, and the proposed apartment has the capacity to serve at least 60
persons. The apartment is conducive for relaxation, study and leisure since the
business has provided amenities and facilities. This makes the business more
appealing to the market.
The total capitalization of the business is P15, 900, 000 and the rest is for
building the apartments for rental purposes. The proposed site is strategically
located and accessible to the people. It is along Dilangalen Street, Poblacion 6,
Midsayap, Cotabato and could serve as the landmark of the town. The
Greenhouse Apartment project is very feasible.

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CHAPTER VIII
RECOMMENDATION
The purpose of this study is to determine the feasibility of establishing
twelve room apartments, to be located at Dilangalen Street, Poblacion 6,
Midsayap, Cotabato. The findings of the study with respect to its marker feasibility,
technical, management and environmental and financial aspects ascertains the
proper operation of the proposed project.
The proposed project will be named GREENHOUSE APARTMENT. It is
called GREENHOUSE because the building is basically designed to provide a
comforting, spacious and more relaxing abode for families, students, travelers,
backpackers and tourist. The site is 1090 square meter, surrounded by fence and
firewall, with a multi-purpose garage and main gate.
There will be promotions and strong alliance and linkages with the
secondary and tertiary schools since the main customers are the college students,
particularly the incoming freshmen students.
The business will comply the regulatory requirements such as giving
mandatory benefits with the employee and environmental awareness.
As a whole, the proponents are recommending the implementation and the
establishments of this project, since Greenhouse Apartment project is very feasible
and promising.