4.

4 Management Operation
Table 12. Projected Annual Salary of Employees
POSITION

REQUIRED
NO.

SALARY/MO
NTH

YEAR
2015

2014
2017

20

2018

General
Manager
Manager
Secretary
Cashier
Helper
Technician
Security
Officer
Total

Table 12 shows the projected annual salary of employees for the first five
years of operation.

4.5 Utilities and Maintenance Operation

Table 13. Projected Annual Expenses
YEAR
EXPENSES

2013
2016

Salaries
Supplies

2014
2017

2015

Purchase of
Facilities
Electric Bill
Telephone Bill
Training Cost
Maintenance
Promotions and
Advertisements
Building
Insurance
Miscellaneous
Expenses
TOTAL

Table 13 shows the projected annual expenses of the business for the first
five years of operation.

CHAPTER IV
FINANCIAL ASPECT
This chapter determines the cash requirement, assets, liabilities,
operation expenses, and derivation of income. It also presents the financial
projection over a period of at least five years.
4.1 Total Project Cost
The Total Estimated Project Cost is twenty nine million, one hundred
forty-eight thousand four hundred twenty- two pesos and sixty centavos
( Php. 29,148,422.60).
4.2 Asset
The Asset of the proposed project will be the project proponent.
4.3 Liabilities
4.3.1 Assumption of Liabilities
1. Electric Bill

- Php. 150,000 per month (an increase

of 10% annually)
2. Telephone Bil

- Php. 10,000 per month (an increase of 5%

annually)
3. Maintenance Cost
7% annually)

-Php. 40, 000 per month (an increase of

4. Supplies

-Php. 150, 000 per month (an increase of 5%

annually)
5. Salaries

-5% increase annually

6. Building Insurance

-Php. 150, 000 annually

7. Building Depreciation -15 years estimated lifespan

8. Purchase of Facilities -5 Million (80% decrease annually)
9. Promotions and Advertisements-50% decrease annually

4.3.2 Breakdown of Liabilities

Table 10 Promotions and Advertising Plan

PRE-OPERATIONAL EXPENSES
Streamers/ Tarpaulins

Php.15, 000.00 /Month

Radio Advertisements
TOTAL

Php.20, 000.00/Month
Php. 35,000.00

PRE- OPENING EXPENSES

Job Description

Required No.

Training Cost

General Manager

Php. 400.00

Manager

Php. 300.00

Accountant

Php. 400.00

Secretary

Php. 250.00

Technician

Php. 700.00

Cashier

10

Php. 1,500.00

Total

21

Php. 3,550.00

Table 10 shows the monthly payment for the advertisement and the
training cost for the personnel needed for the business.

Table 11 Payroll of Employees

POSITION

REQUIRED
NO.

SALARY/MONTH

ANNUAL
SALARY

General Manager

Php. 25, 000.00

Php. 300,000.00

Manager

Php. 20, 000.00

Php.240, 000.00

Accountant

Php. 30, 000.00

Php. 360, 000.00

Secretary

Php. 14,000.00

Php. 168,000.00

Cashier

10

Php. 7,500.00

Php. 900, 000.00

Helper

10

Php. 6,500.00

Php. 780,000.00

Technician

Php. 7,000.00

Php. 588, 000.00

Security Officer

10

Php. 7,500.00

Php. 900,000.00

Total

41

Php. 117, 500.00

Php.
4,236,000.00

Table 11 illustrates the payroll of employees in the business per month

and per year.

4.6 Derivation of Income

4.6.1 Income from the Grocery
Assumption:
The annual income will increase by 10% per annum.

Table 14 Projected Annual Income for the Grocery

YEAR

2014

2015

2016

2017

2018

DAILY
INCOME
ANNUAL
INCOME

Php.
50,000.00
Php.
18,250,000
.00

Php.
55,000.00
Php.
20,075,000
.00

Php.
60,500.00
Php.
22,143,000
.00

Php.
66,550.00
Php.
24,290,750
.00

Php.
73,205.00
Php.
26,719,825
.00

Table 14 shows the projected daily and annual income for the
grocery.

4.6.2 Income for Rentals

a. Food Stalls
Number of Food Stalls= 5
Assumptions:
1. Each food stalls shall be rented at a rate of Php. 20,000.00 Per
month.
2. Rent shall increase by 6% per annum.

b. Shopping Units
Number of Shopping Units= 13
Assumptions:
1. Shopping units shall be rented at an average rate of Php.
50,000.00 per month for large, Php. 40,000.00 for medium,
and Php. 30,000.00 for small.
2. Rent shall increase 10% per annum.

Table 15 Projected Annual Income from Rentals

Rentable
Unit
5 Food
Stalls
7
Shopping
Unit
(Large)
4
Shopping
Units
(Medium)
2
Shopping
Units
(Small)
Total

YEAR
2015

2014

2016

2017
Php.
1,200,000.
00
Php.
4,200,000.
00

2018
Php.
1,272,000.
00
Php.
4,620,000.
00

Php.
1,348,320.
00
Php.
5,082,000.
00

Php.
1,429,219.
20
Php.
5,590,200.
00

Php.
1,514,972.
35
Php.
6,149,220.
00

Php.
1,920,000.
00

Php.
2,112,000.
00

Php.
2,323,200.
00

Php.
2,555,520.
00

Php.
2,811,072.
00

Php.
720,000.00

Php.
792,000.00

Php.
871,200.00

Php.
958,320.00

Php.
1,054,152.
00

Php.
8,040,000.
00

Php.
8,796,000.
00

Php.
9,624,720.
00

Php.
10,533,259
.20

Php.
11,529,416
.35

Table 15 shows the projected annual income from rentals for the first five
years of operation.

4.7 Annual Gross Income

Table 16 Projected Annual Gross Income

YEAR
Grocery

Rentable
Spaces
TOTAL

2014
2017
Php.
18,250,000
.00
Php.
8,040,000.
00
Php.
26,290,000
.00

2015
2018
Php.
Php.
20,075,000 22,143,000
.00
.00
Php.
Php.
8,796,000. 9,624,720.
00
00
Php.
Php.
28,871,000 31,767,720
.00
.00

2016
Php.
24,290,750
.00
Php.
10,533,259
.20
Php.
34,824,009
.20

Php.
26,719,825
.00
Php.
11,529,416
.35
Php.
37,979,241
.35

Table 16 shows the projected annual gross income for the first five
years of operation

4.8 Annual Net Income

Table 17 Projected Annual Net Income

2014
Annual
Php.
Gross
26,290,000.0
Income
0
LESS:
Php.
Annual
14,142,500.0
Expenses 0
Annual
Php.
Deprecia 2,042,114.96
tion
Income
Php.
Before
10,105,385.0
Tax
4
Income
Php
Tax
1,212,646.21
(12%)
NET
INCOME

Php.

2015
Php.
28,871,000.0
0
Php.
10,453,900.0
0
Php.
2,042,114.96

2016
Php.
31,767,720
.00
Php.
10,106,042
.00
Php.
2,042,114.
96
Php.
Php.
15,774,985.0 19,619,563
4
.04
Php.
Php.
1,892,998.21 2,354,347.
57

Php.
Php.
13,891,986. 17,265,21
8,892,738.8 84
5.48
3

2017
Php.
34,824,009
.20
Php.
10,489,160
.14
Php.
2,042,114.
96
Php.
22,292,734
.10
Php.
2,675,128.
09
Php
19,617,60
6.01

4.9 Financial Analysis

Table 18 Return of Investment (ROI)

2018
Php.
37,979,241
.35
Php.
11,067,968
.56
Php.
2,042,114.
96
Php.
24,869,157
.83
Php.
2,984,298.
94
Php.
21,884,85
8.89

YEAR

2014

NET INCOME
AFTER TAX
Php.
8,892,738.83

2015

Php.
13,891,986.84

2016

Php.
17,265,215.48

2017

Php
19,617,606.01

2018

Php.
21,884,858.89

RATE OF ROI

Php . 8,892,738.83
x 100=30.51
29,148,422.60
Php . 13,891, 986.84
x 100=47.66
29,148,422.60
Php . 17,265, 215.48
x 100=59.23
29,148,422.60
Php 19,617,606.01
x 100=67.30
29,148,422.60
Php . 21,884,858.89
x 100=75.08
29,148,422.60

4.9.2 Cash Payback Period

Average annual Net Income
= 8,892,738.83+
13,891,986.84+17,265,215.48+19,617,606.01+21,884,858.89
5

=Php. 16,310,481.21
Cash Payback Period =

TOTAL PROJECT COST__

AVE. ANNUAL NET INCOME

= __ Php. 29,148,422.60__
Php. 16,310,481.21
= 1.79 years or assume 2 years

CHAPTER V
SOCIO-ECONOMIC ASPECT
This chapter aims to determine the specific benefits that the society
will gain from the proposed project. It will analyse the present and future
economic condition of the society. This is where the Benefit-Cost Ratio is
presented.
As being seen in Table 17 that the total annual projected benefit
derived for five years (B) is Php. 92, 661, 825.05 and the total annual
projected expenses is Php. 56, 259, 570.70. From which, the total capital (C)
equals to the sum of the total estimated project cost and total annual
projected expenses.

5.1 Benefit Cost Ratio

B
Anual Benefit Derived
=
C Capital+ Annual Expenses

B = Php. 92, 661, 825.05

C = Php, 29, 148, 422.60 + Php 56, 259, 570.70
C = Php. 85, 407, 993.30
B 92, 661,825.05
=
C 85, 407, 993.30

B
= 1.10
C

Based on the computation, the Benefit-Cost Ratio (BCF) which has a

value of 1.10 which is greater than 1.0 means that the proposed project
entitled, Bangued Supermarket is feasible.

CHAPTER VI
ENVIRONMENTAL ASPECT

The chapter analyses the environmental effects of the proposed

project. It shall present the methods used in disposing off waste materials as
mean of protecting the environment during and after the construction of the
project and during its operational phase.
Environmental Compliance Certificate shall be secured first before the
implementation of the project to ensure the security of the surroundings. The
health and sanitation of the public are the most important factors to be
considered. It shall be provided with suitable waste disposal system.
Traditional method of waste disposal shall be imposed. The segregation of
biodegradable (like vegetables stocks and leftover meals of the restaurant)
and non-biodegradable (tin caps, can, bottles, plastic packages and bags)
materials will be strongly enforced. These will be collected everyday by the
garbage dump truck and others will be given for free to hog raisers in the
nearby barangays.
It shall also be provided with an effective permanent utilities and
drainage system for used water from the washing and cleaning of the
materials in the restaurant and from cooking of foods. These wastes and the
used water from the comfort rooms shall be discharge directly to the
designed septic tank of the project. Refer to plumbing details.
For the legal requirements, the business or the project shall secure
sanitary permits from the municipality of Bangued to comply with the
necessities in disposing of wastes materials.

Table 18 Identified Wastes and How to Get Rid of Them

Waste Classification
1. Waste Materials
Cans
Plastics
Papers
Bottles

2. Dirty Water
Used
from
rooms
Urines

Treatment
It will be segregated

Disposal Scheme
Those materials that

according to its

can be recycled will be

classifications and to

disposed to the junk

be placed in

shop and those that

segregated trash cans

are not must be kept

or plastics bags. It will

and to be collected by

be recycled.
Ensuring that the

the garbage collection.

Sewages will be

sewage lines are

discharged to the

always in good

septic tank of the

condition and properly

building.

water
comfort

monitored.

Table 18. Shows the effective and appropriate system of waste

disposal.