I.

EXECUTIVE SUMMARY

Project Background

Name of Proposed Project: Tebker Shell Unit

Location of Project: Brgy. Bukang Liwayway,

Munoz, Nueva Ecija

Type of Business: Limited Partnership

Proponents: Verde, Januarell A.D.

Pizarro, Rusty

Vicente, Ronel Matthew J.

Boado, Bonifacio R. Jr

Valentin, Renz Nizar V.

II. INTRODUCTION

A boarding house is frequently a family home, in which lodgers rent one or

more rooms for one or more nights and sometimes for extended periods of weeks,
months, and years. Lodgers legally only obtain a license to use rooms, and not exclusive
possession, so the landlord retains the right of access. The boarding house reinforced
some social changes: it made it feasible for people to move to a large city, and away
from their families.
Tebker Shell Unit is owned by TEBKER Co. that provides a boarding
house/microapartment. The proponents’ main priority is to establish a boarding house
that wherein they can offer the best facilities for the students of Central Luzon State
University at a reasonable price.
Management Feasibility Summary

Tebker Shell Unit, owned by TEBKER Co., being a limited partnership

business, they also agreed to have one general partner of the business venture in which,
he or she manages the day-to-day business operation and has unlimited liability for the
debts and obligations of the business venture. Limited partners do not receive dividends
but enjoy direct access to the flow of income and expenses.

The Tebker Shell Unit, since it is formed under the partnership type of
ownership, is structured in a flat structure manner in order to achieve its goals in an
efficient and effective manner.

Marketing Feasibility Summary

Tebker Shell Unit will be established in Brgy. Bukang Liwayway, Science City
of Muñoz, Nueva Ecija for this location can give better access and service for the target
market of the business since Tebker Shell Unit is targeting to serve wide range of
students, workers, and people needing a house for short term tenure to long term.

The market has always been affected by number of factors. These factors are
the ones responsible for how the market reacts to a certain product or service. In
entrepreneurship, it is very important to know the factors so one may use that certain
knowledge to gain profit.

Promotion is essential to every business venture to inform, persuade and remind

customers about the products and services they are offering. Social networking sites
will be used a means of promoting the products they have to offer.

Technical Feasibility Summary

The business is named Tebker Shell Unit and it will be constructed at Brgy.
Bukang Liwayway, Science City of Muñoz, Nueva Ecija.

Since the target market is their main consideration, the proponents chose to
build it in Science City of Muñoz near Central Luzon State University which has great
access to transportation, electricity, and water supply. The proponents chose the place
because their target market is the students and faculty members of the said university.

Financial Feasibility Summary

Based on the financial feasibility of the study, it can be concluded that the
business is feasible in terms of financial matters. The business will be able to meet its
long-term obligations. The business will show effectiveness and great performance in
the next ten years of operation. It will also have continuous flow of money that will be
used for the workers’ salaries, utilities, maintenance and for purchasing raw materials.

A total project cost of PHP 5,474,443.63 will be used by the business. The
business will be able to meet its long-term obligations provided that serious external
factors will not affect the business.

MANAGEMENT FEASIBILITY
Business Organization
The proponents came up with the project Tebker Shell Unit which will be owned
and managed under the partnership form of organization and under the company
TEBKER Co.. TEBKER Co. is a land developer company that produces affordable
housing for everyone. The business venture has five partners namely: Januarell A.D.
Verde, Rusty Pizarro, Ronel Matthew Vicente, Bonifacio Boado Jr., Renz Nizar
Valentin.

Type of Ownership
The type of ownership is limited partnership. Limited partnership allows each
partner to restrict his or her personal liability to the amount of his or her investment. It
is in which the partners share money, skills, and share the same goals and objectives.
The proponents also agreed to share the profits, and losses according to their terms of
agreement. They also agreed to have one general partner of the business venture in
which, he or she manages the day-to-day business operation and has unlimited liability
for the debts and obligations of the business venture. Limited partners do not receive
dividends but enjoy direct access to the flow and income and expenses. The partnership
should also create a partnership agreement to spell out how to run the partnership and
what happens in various circumstances. In the absence of agreement of the partners, the
business venture is deemed to operate and share the risks, profits and losses equally.
Mutual support, better understanding, and motivation are needed for the business
venture to operate longer.

Capital Requirement
Table 1. Proponents’ Personal Information
Name Address Nationality Percentage of
Ownership
Verde, Januarell A.D. Guimba, Nueva Ecija Filipino 20%
Pizarro, Rusty Umingan, Pangasinan Filipino 20%
Vicente, Ronel Matthew San Jose City, Nueva Filipino 20%
Ecija
Boado, Bonifacio Jr. Bongabon, Nueva Filipino 20%
Ecija
Valentin, Renz Nizar San Jose, Nueva Ecija Filipino 20%

Table 1 shows the proponents’ identity and corresponding personal profile with
their respective equivalent percentage ownership of the business. The initial capital for
the business venture is PHP 10,000,000.00 to start up their business venture.

Logo

Figure 1. Tebker Shell Unit Official Logo

The logo of Tebker Shell Unit has a simple design – a golden Gator (Turtle)
Shell and the unit name. The shell is gold because it shows elegance, toughness, and
durability. Shell also represents a house or shelter.
 The name itself is coloured with gray and black. That is because gray is a cool,
neutral and balanced colour that is associated with formality, sophistication, and
conservable; and black also means elegance, sophistication, and mystery--- mystery as
to what it can show and offer. It is only aligned straight because it resembles the
unswerving commitment of Tebker Co. to produce housing to people. Straight also
means extending in one direction only: into the success.

Figure 2. TEBKER Co. Official Logo

Vision
To build on our success and high standard in the housing industry;
we will earn our customers’ enthusiasm through meeting our
customers’ expectations and making the Tebker Co. Engineers a
mission-driven developer in a caring environment for people. We
will be the developer of affordable for-sale and for rental housing
opportunities.

Tebker visualizes Tebker Shell Units of becoming well-known in their chosen

field. Wherein, the Science City of Muñoz recognizes the services and features of the
business.

Mission
To offer a decent, safe, and affordable residential units to people
with modest means.

Tebker Co. aims to introduce an affordable housing to the students of Science

City of Muñoz by providing them new twists to the boarding house they usually
consume. They also aim to offer it at the best affordable price the students, and faculty
desired.
Goals and Objectives
- To ensure that the location of housing offers residents adequate
access to transport, employment, services, and to social and
support networks.
- To provide housing in a way that contributes to the sustainability
of communities and is compatible with the goal of environmental
sustainability.
- To provide housing choice by encouraging housing of different
types, size and tenure in suitable locations, at a range of prices
within the reach of households of varying financial capacity.
- To give households access to housing that is appropriate to their
needs.
- To promote a range of housing that is affordable to households
of varying financial capacity, including an adequate supply of
housing that is affordable for very low, low and moderate-income
households.

The Tebker Co. is not new to everyone especially for the individuals living in
Science City of Muñoz when it comes to the service they have to offer. However, the
business venture will have an edge to the competitors since they have objectives to
fulfil: that is to offer the students of Central Luzon State University a homey boarding
house. The service providers will stay generous, courteous, and friendly among the
individuals who will patronize the business venture and will consider them as a valuable
customer.

Internal Organization Structure

The Tebker Co. Engineers, since it is formed under the partnership type of
ownership, is structured in a flat structure manner in order to achieve its goals in an
efficient and effective manner.
As a flat organizational structure, it will relatively have a few layers of
management. This means that the “Chain of Command” if from top to bottom and the
span of control is narrow.
The Tebker Co. management ensures that the span of control does not become
too wide so that they can manage the reports effectively and efficiently.
 MARKETING FEASIBILITY
Name of the Service
The proponents came up with the name “Tebker Shell Unit” as the name of the
business venture. They derived the name of business from their company “Tebker Co.”
with its meaning: “Strong, tough and durable”, “shell” meaning “Home, house
protection” and “unit” meaning “apartment.”

Properties of the Service

Housing industry is one of the fastest growing branches of national economy,
which expanded to 6.7% in the past year. It is a complex and common diverse business
that supplies most of the housing on the world population in which plays an essential
part of the society.
The proponents came up with Tebker Shell Unit because of the well-diverse
business available in the city, as well as the increase in job opportunity since Science
City of Munoz is becoming a highly urbanized city, to cater temporary residence for
various people.

Geographical Area of Dispersion

The Tebker Shell Unit will be established in Brgy. Bukang Liwayway, Science
City of Muñoz, Nueva Ecija for this location can give better access and service for the
target market of the business since Tebker Shell Unit is targeting to serve wide range
of students, workers, and people needing a house for short term tenure to long term.
Since the location will be in Science City of Muñoz, the customers will probably be
around the province of Nueva Ecija. Furthermore, businesses in the province require
good service. The chance of being on the line of success will be bigger considering that
the services are affordable and high quality.

Study of Demand
To obtain consumer feedback for the idea that the proponents came up with,
they conducted a consumer survey to know what are the opinions of their target market
about their business venture. Among the people of Central Luzon State University the
total population, 87% would like to try living in the boarding house the proponents
came up to.
 Table 2. Past Demand Data of Tebker Shell Unit

Year Actual Value (Y) X X2 XY

2014 8957.52 -2 4 -17,915.04

2015 10644.45 -1 1 -10,644.45
2016 9902.34 0 0 0
2017 12199.14 1 1 12,199.14
2018 10362.57 2 4 20725.14

ƩY = 52,066.02 ƩX2 = 10 ƩXY = 4364.79

Table 2 presents the computation of the projected demand. To arrive at the

results, the formula, (a + bX) was used. It shows that the demand for Tebker Shell Unit
by 2019 will reach 11,722.41 and will further increase up to 13,468.29 by the year 2022.
This signifies a good opportunity for the business to increase its sales and achieve its
goals and objectives in the industry.

Table 3. Projected Demand Data of Tebker Shell Unit

Year X Projected Demand (Yc) Computation (a+bX)

2019 3 11,722.41 10,413.20+436.47 (3) = 11,722.41
2020 4 12,158.88 10,413.20+436.47 (4) = 12,158.88
2021 5 12,595.35 10,413.20+436.47 (5) = 12,595.35
2022 6 13,031.82 10,413.20+436.47 (6) = 13,031.82
2023 7 13,468.29 10,413.20+436.47 (7) = 13,468.29

Where:

Ʃ𝒀 52,066.02
a= = = 10,413.20
𝒏 𝟓

Ʃ𝑿𝒀 4364.70
b = Ʃ𝑥 2 = 𝟏𝟎 = 436.47
Study of Supply
Table 4. Projected Supply of Boarding House
Year Projected Supply
2020 32
2021 32
2022 32
2023 32
2024 32

The tables above show the supply for the boarding house units. It is showed
constant throughout the operating period of the business venture.

Demand-Supply Analysis
Table 5. Demand-Supply Analysis
Year Demand Supply Demand-Supply Gap
Projected (Boarding House)
2020 5312.78 32 5280.78
2021 5933.40 32 5901.4
2022 6599.90 32 6567.9
2023 6383.57 32 6351.57
2024 7585.70 32 7553.70

The price of the goods in a business is the one that indicates the customer’s
demand of the product.
Price Study
The Law of Supply states that the supply increases as prices increase and
decreases as prices decrease which states that those that are already in business will try
to increase productions as a way of increasing profit.
On the other hand, the Law of Demand states that at a lower price, more people
can afford to buy more goods or services and more of an item more frequently, than
they can at a higher price. Generally, if there is a low supply and a high demand, the
price will be high. In contrast, the greater the supply and the lower the demand, the
lower the price will be.
 The process starts with consumers demanding goods or services. When demand
is high, producers can charge high prices for goods or services. The promise of earning
large profits from high prices inspires producers to manufacture goods or services to
meet the demand. However, the law of demand states that if prices are too high, only a
few consumers will purchase the goods or services and demand will go unmet. To fully
meet demand, producers must charge a price that will result in the required amount of
sales while still generating profits for themselves.

Factors Affecting the Market

Throughout time and generations, the market has always been affected by
number of factors. These factors are the ones responsible for how the market reacts to
a certain product or service. In entrepreneurship, it is very important to know the factors
so one may use that certain knowledge to gain profit.
The location of the business will be situated for greater access to possible
markets. The business venture is to be placed in Brgy. Bukang Liwayway, Science City
of Muñoz, Nueva Ecija which is great for meeting the major user of the service offered
by the venture.
Involving another factor that affects the market is the cost of the service. It is
guaranteed that the prices of the service are affordable enough for the target market.
The structural design is also another factor that may be considered. It should be
modified to set higher standards and to be the best apartment.

Marketing Program
Marketing Review
Housing is an increasing business in terms of number of people who are doing
it. There are many boarding house and apartments emerging, especially in where there
are most people. With that kind of flow, the proponents came up with their idea of
producing residential unit for students of Central Luzon State University to alleviate
the supply needed for the increasing demand for affordable apartment or boarding
house.
Tebker Co., the proponents’ company, expected this business, Tebker Shell
Units, to grow and this will be achieved through providing the best for a cheaper price
with efficiency and effective use of materials and time.
Marketing Objective
The objectives of Tebker Shell Unit is to ensure that the location of housing
offers residents adequate access to transport, employment, services, and to social and
support networks, to provide housing in a way that contributes to the sustainability of
communities and is compatible with the goal of environmental sustainability, to provide
housing choice by encouraging housing of different types, size and tenure in suitable
locations, at a range of prices within the reach of households of varying financial
capacity, and to give households access to housing that is appropriate to their needs.
Promotion
Promotion is essential to every business venture to inform, persuade and remind
customers about the products and services they are offering. Social networking sites
will be used a means of promoting the products they have to offer. Since, social
networking sites are now a daily routine, it is now easy to advertise products. Just a
scroll and the page might catch their attention. Tarpaulins will also be printed for
additional advertisement containing the contact number of the owners.

Figure 3. Social Networking Sites that will be used as promotion tool

Conclusion
To know if there is a demand for the following products that will be offered by
the business firm, they conducted a market survey from the students of Central Luzon
State University. And as a result of the survey, the products that will be offered
therefore have a demand. There will also be enough supply to cover the demand of its
consumers.
The expected rent per person is PHP 2500.00. The price is based on the
willingness-to-pay, and costs of raw materials to produce the housing unit.
The marketing strategies that will be used are developing brand awareness.
Since, they are a newly opened business venture, promoting their brand is their top
priority. Gaining customers’ attention is crucial part of success and plans and
development plans, which means content should be created that attracts people that
don’t have enough knowledge about your business.
The aforementioned project, for the following years, it will continue to expand,
which will further help in the improvement of the country’s economy.

TECHNICAL FEASIBILITY

Nature of the Service

The Tebker Shell Unit is a one duplex apartment unit and one boarding house
which will be new to the customer’s choice preferences. The target market of the
business venture is the students and workers of Central Luzon State University and of
other nearby towns, cities, or provinces.

Tebker Shell Unit will be equipped with CCTV Cameras operating twenty-four
hours every day. Its purpose is to maintain the security of the tenants and to decrease
the theft activities from less to zero. Tebker Shell Unit will provide high speed internet
connection to all tenants with router in each unit to maximize the connectivity area.
Internet connection is one of the primary needs of a student because almost all
information can be found through surfing. It also offers a centralized air conditioner to
the whole house in which can only be operated at nights, which is the edge of the Tebker
Shell Unit.

Location of the Business

The proponents of the business venture had canvassed and chose the appropriate
place for their business. Since their target market is their main consideration, they chose
to build it in Science City of Muñoz near Central Luzon State University which has
great access to transportation, electricity, and water supply. The proponents chose the
place because their target market is the students and faculty members of the said
university.
Total Production Cost
Table 6. Summary Cost Estimates for Materials and Labor for the Construction of the
One Unit in Tebker Shell Unit
NO. DESCRIPTION MATERIALS LABOR
I. EARTHWORK PHP 32,400.00
II. REBARS PHP 348,328.00
III. MASONRY WORK PHP 339,950.00
IV. FORMS & SCAFFOLDING PHP 322,895.00
V. TRUSS PHP 146,354.00
VI. TINSMITTING PHP 93,000.00
VII. ELECTRICAL PHP 56,453.00
VIII. PLUMBING PHP 128,879.00
IX. PLASTERING PHP 56,135.00
X. TILE WORK PHP 81,275.00
XI. CEILING PHP 85,106.00
XII. DOOR & WINDOW PHP 135,240.00
XIII. GRILL PHP 47,490.00
XIV. PAINTING PHP 62,148.00

PHP 1,935,653.00 PHP 696,835.08

MATERAILS & LABOR PHP 2,632,488.08
 MACHINERIES, EQUIPMENT, AND TOOLS
Table 7. List of Materials and Tools to be used by Tebker Shell Unit
SOURCES/ TOTAL
DESCRIPTION USES SUPPLIERS UNIT QTY. PRICE PRICE
SECURITY EQUIPMENT
Fire Fire Safety Ace Piece 6 Php Php 9,000.00
Extinguisher Hardware 1,500.00
CCTV Camera Safety Shopee Piece 4 Php Php 18,400
4,600.00
CLEANING MATERIALS
Solid Waste Muñoz Piece 9 Php Php1800.00
Trash Bin Management Market 200.00
FURNITURES AND
FIXTURES
For customers Verde’s Sets 6 Php Php 9000.00
Chairs to sit upon. Furniture 1,500.00
For storage of
Kitchen cabinet kitchen Verde’s Piece 3 Php Php 9,147.30
utensils and
Furniture 3,049.10
other
ingredients
For tenants to Verde’s Piece 16 Php Php 103,840
Double-deck have an Furniture 6,490.00
instrument to
beds
lie for.
For storage of Php Php 69,600
Bedroom the tenants’ Verde’s Piece 16 4,350
clothes and
Cabinet Furniture
other
belongings
For dining or Verde’s Piece 6 Php 2000 Php
Wooden table support for Furniture 12,000.00
writing
For tenants to SM Homes Piece 32 P2,290 Php 42,280
Foam comfortably
sleep in bed
Total Php 275,067.30
Building Structure and Other Facilities
A unit in Tebker shell Unit is 6 meters wide and 10 meters long, and is a two-
storey duplex. Presented below are the detailed engineering works like architectural,
structural, electrical, and plumbing layouts of the business venture.

Figure 2. Ground Floor Plan

Figure 3. Second Floor Plan

Figure 4. Front Elevation (left) and Left Side Elevation (right)

Figure 5. Rear Elevation (left) and Right Side Elevation (right)

 Table 8. Bill of Materials per One Duplex
NO. DESCRIPTION QTY UNIT UNIT QTY-PRICE
PRICE
I. EARTHWORK
Excavation 52 m2
Backfill 29 m2
Earth fill 162 m2 200 32400.00
32,400.00
II. REBARS WORK
16 mm ø RSB 360 Pcs 340 122400.00
12 mm ø RSB 386 Pcs 215 82990.00
10 mm ø RSB 846 Pcs 153 129438.00
#16 Tie Wire 10 Roll 1350 13500.00
348,328.00
III. MASONRY WORK
Cement (Republic) 794 Bag 265 210410.00
Sand-1 60 mm2 550 33000.00
Gravel ¾ 42 mm2 1000 42000.00
CHB 5” 5454 Pcs 10 54540.00
339,950.00
IV. FORMS & SCAFFOLD
2 x 4 x 12 Coco Lumber 1557 Pcs 160 249120.00
Plywood ¼ Ord 77 Pcs 250 19250.00
CWN 1 ½” 1.2 Keg 1250 1500.00
CWN 3” 3 Keg 1300 3900.00
CWN 4” 3 Keg 1375 4125.00
322,895.00
V. TRUSS WORK
Angular Bar 2 x 2 x ¼ 53 Pcs 1643 87079.00
Angular Bar 1 ½ x 1 ½ x 42 Pcs 676 28392.00
3/16 36 Pcs 518 18648.00
2 x 4 Purlins 3 1130 3390.00
Welding Rod 4 Gal 475 1900.00
Retoxide (Boysen) 5 Gal 353 1765.00
Paint Thinner 12 Pcs 220 2640.00
Plain Bar 12 mm ø 12 Pcs 195 2340.00
Flat Bar 3/16 x 1 5 Pcs 40 200.00
Paint Brush
146,354.00
VI. TINSMITTING
Roof Tiles-LS 93,000.00
VII. ELECTRICAL WORK
Light 100 Watts 26 Pcs 155 4030.00
No. 14 THW Stranded 2 Box 2800 5600.00
No. 12 THW Stranded 3 Box 3200 9600.00
No. 08 THW Stranded 35 m 80 2800.00
Junction Box 19 Pcs 35 665.00
Utility Box 26 Pcs 25 650.00
PVC Conduit 1 ¼ 5 Pcs 145 725.00
 PVC Elbow ½ 20 Pcs 20 400.00
PVC Conduit ¾ 20 Pcs 110 2200.00
PVC Conduit ½ 2 Pcs 65 130.00
Metal Conduit-Pipe 1 ¼ 1 Pcs 450 450.00
Flexible Hose ½ 3 Pcs 350 1050.00
Flexible Hose ¾ 1 Pcs 450 450.00
Switch 1 Gang 10 Set 301 3010.00
Switch 2 Gang 12 Set 435 5220.00
C.O. 3 Gang 22 Set 295 6490.00
CKT Breaker 20 AMP 4 Set 300 1200.00
CKT Breaker 30 AMP 8 Set 300 2400.00
CKT Breaker 100 AMP 1 Set 900 900.00
Panel Box 8 Branches 1 Pc 2000 2000.00
MCD 1 ¼ Elbow 2 Pcs 69 138.00
Electrical Tape (Bib) 15 Pcs 25 375.00
Coupling PVC ½ 22 Pcs 15 330.00
Cable Outlet Single 2600.00
Cable Wire & 2400.00
Accessories 2 Set 320 640.00
Washing Machine Outlet
56,453.00
VIII PLUMBING WORK
Kitchen Sink 2 Pcs 3544 7088.00
Floor Drain 6 Pcs 224 1344.00
Shower Set (Telephone 4 Set 6272 25088.00
shower) 15 Pcs 275 4125.00
PVC Pipe 2” 24 Pcs 71 1704.00
Elbow 2” 14 Pcs 64 896.00
Tee 2” 14 Pcs 144 2016.00
P-trap 2” 8 Pcs 805 6440.00
PVC Pipe 4” 24 Pcs 100 2400.00
Elbow 4” 9 Pcs 52 468.00
1/8 Bend 4” 14 Pcs 216 3024.00
P-Trap 4” 20 Pcs 64 1280.00
Clean-out 4” 8 Pcs 155 1240.00
Tee 4” 23 Pcs 115 2645.00
Wye 4 x 2 23 Pcs 165 3795.00
Wye 4 x 4
15 Pcs 59 885.00
PVC Pipe ½ 72 Pcs 16 1152.00
PVC Elbow ½ 22 Pcs 35 770.00
PVC Tee ½ 19 Pcs 25 475.00
PVC Coupling ½ 8 Pcs 650 5200.00
Faucet Stainless 55 Pcs 10 550.00
Teflon Tape 8 Pcs 210 1680.00
Angle Valve ½ x ½ x ½ 7 Pcs 145 1015.00
Double 2 Pcs 180 360.00
Angle Valve ½ x ½ 2 Pcs 185 370.00
Single 5 Pcs 100 500.00
Check Valve 1 Pc 93 93.00
 Gate Value 6 Set 4700 28200.00
Bushing ½ x 3/8 6 Set 484 2904.00
Elastosel 6 Set 872 5232.00
Water Closet 6 Pcs 330 1980.00
Bidet 4 Pcs 415 1660.00
Lavatory 15 Pcs 820 12300.00
Tissue Holder
Hose Bibb
PVC Black 4”
128,879.00
IX PLASTERING WORK
Cement (Republic) 189 Bag 265 50085.00
Sand 11 mm2 550 6050.00
56,135.00
X TILES WORK
8 x 8” Unglazed 289 Pcs 15 4335.00
8 x 12” Glazed 768 Pcs 25 19200.00
12 x 12” Glazed 1212 Pcs 35 42420.00
Tile Adhesive 21 Bag 359 7539.00
Tile Grout 15 Kg 56 840.00
Cement 17 Bag 265 4505.00
White Cement 3 Bag 800 2400.00
Masking Tape 3 Pcs 12 36.00
81,275.00
XI CEILING WORK
Plywood Marine ¼ 42 Pcs 330 13860.00
2 x 2 x 12 Good Lumber 102 Pcs 360 36720.00
Fin Nail 2D 4 Kgs 44 176.00
Fin Nail 8D 7 Kgs 45 315.00
Stikwell 3 Pcs 200 600.00
Sand Paper No. 80 6 Pcs 20 120.00
Spandrel 31075.00
Angular 1 ½ x 3/16 8 Pcs 280 2240.00
85,106.00
XII DOOR & WINDOW
Analok Door 1 (Main 2 Pcs 3800 7600.00
Entrance) 6 Pcs 1990 11940.00
PVC Door 0.80 2 Pcs 3200 6400.00
Analok Door 0.90 6 Pcs 2900 17400.00
(Service Door) 2 Pcs 2500 5000.00
Analok Door 0.80 236 ft2 295 69620.00
(Bedroom) 54 Pcs 220 11880.00
Analok Door 0.60 18 Pcs 300 5400.00
(Terrace) 135240.00
Analok Sliding Window
Hinges (Stanley)
Door Lock

XIII GRILL WORK

 Terrace 6 m2 1635 8190.00
Stair 30 m2 1310 39300.00
47,490.00
XIV PAINTING WORK
Primer (Permacoat Flat 25 gal 491 12275.00
Latex 701) 12 gal 440 5280.00
Spot Putty (Acrytex Cast 38 gal 580 22040.00
1711) 3 gal 420 1260.00
Topcoat (Permacoat 2 gal 445 890.00
Latex 715) 23 gal 281 6463.00
Reducer for Putty 15 gal 281 4215.00
(Acrytex Reducer 1711) 5 pcs 25 125.00
Neutralizer (Masonry 5 pcs 50 250.00
Neutralizer 44) 5 pcs 90 450.00
Full Putty (Masonry 1 sack 3000 450.00
Putty 7311) 40 pcs 25 3000.00
Spot Putty (Masonry 15 pcs 200 3000.00
Putty 7311) 5 pcs 90 450.00
Brush 1” 5 pcs 120 600.00
Brush 2” 10 pcs 140 1400.00
Brush 3”
Patching Compound
Masking Tape
Polituff
Roller 4”
Roller 7”
Roller 9”
62,148.00

Waste Disposal Management

Tebker Co. will follow the Solid Waste Management System of Science City of
Muñoz. The Tebker Shell Unit management will provide trash bins, 3 per room in
which will be collected every two days.
Tenants must segregate the wastes properly and should be placed according to
its classification—biodegradable, non-biodegradable, and hazardous for an easy way
of disposal of wastes. The trash bins inside are for the tenants’ liberty to throw their
wastes properly, and also to maintain the cleanliness, orderliness, and sanitation of the
surroundings.
Utilities
In establishing a business it is important to consider the sanitation, safety,
coziness, and security of the customers. Tebker Co. provided different utilities for the
convenience of the tenants of Tebker Shell Unit.
 The power source of Tebker Shell Unit will be the Nueva Ecija II Electric
Cooperative Inc. and the water source will be the Muñoz Water District.
Table 9. Estimated Utilities Expense of Tebker Shell Unit
Utility Amount per month Amount per year
Electricity PHP 3,500 PHP 42,000
Water PHP 2,000 PHP 24,000
Internet PHP 2,000 PHP 24,000
Total PHP 7,500 PHP 90,000

Technological Assistances

Table 10. Techno-Managerial Bodies of Tebker Shell Unit

TYPES OF ASSISTANCE NAME OF OFFICE

Fire Safety and Inspection Bureau of Fire Protection
Tax Purposes Bureau of Internal Revenue
Sanitation Department of Health
Building/Structure Examination Department of Public Works and Highways

Business Name Registration Department of Trade and Industry

Legal Forms
1. Business Permit. The government allows individuals or companies in
establishing businesses within the country’s geographical jurisdiction. The
government uses business permits as authorization to start a business. This is
issued by the local government. In Green Adobe Co., the proponents will get
this permit at the municipality of Science City of Muñoz.
2. Sanitary Permit. The Department of Public Health and Social Services
issues this official document to authorize a health-regulated establishment to
operate, after it has been determined to have met the minimum requirements for
the sanitary operation of this type of business.
3. BIR Forms. The Bureau of Internal Revenue issues this kind of form to
business owners to ensure that the owners are paying the right taxes that they
must pay.
 4. Fire Safety Inspection Certificate. It is a pre-requisite prior to the
issuance of Occupancy Permit. It signifies that the owner/administrator
significantly complied with the standard requirements recommended by the Fire
Safety Inspector or the Fire Safety.
FINANCIAL FEASIBILITY
Major Assumptions Used
Fixed asset is an asset that is purchased for long-term use and is not likely to be
converted quickly into cash such as land, buildings, equipment, machinery, and
vehicles. Fixed assets enable their owner to carry on its operations. The proponents
used land, building, and equipment.
The expected rent per person is PHP 1,100.00; however, in apartment unit, the
whole place is being paid for PHP 5000.00. Expansion may be realized if the demand
is high.
For the depreciation expense, the business building will have its annual depreciation
of 10%. While the equipment, cleaning materials, and furniture will depreciate at 8%
annually.
The Tebker Shell Unit will have Nueva Ecija Electric Cooperative (NEECO II) and
Muñoz Water District to supply its power and water needs, with an estimated monthly
bill of Php 7,500.00 to be handled by the tenants.
The proponents of the business will share Php 2,000,000.00 each for the
beginning capital with a total of Php 10,000,000.00.
Total Project Cost
Table 11: Estimated Initial Funding Requirements
Description Cost
Building Php 5,264,976.16
Security Equipment Php 27,400
Furniture and Fixtures Php 245,867.30
Waste Disposal Facilities Php 1,200.00
Legal Fees Php 8,000.00
Estimated Total Project Cost PHP 5,474,443.46

Listed in the above table are the funding requirements of the proposed business
venture.
Sources of Financing
The proponents of Tebker Shell Unit contributed equal amounts of cash to
finance the capital requirements of the business venture. The contributed Php
2,000,000.00 each which totaled to Php 10,000,000.00.
Table 12. Cost of Capital of Tebker Shell Unit
Sources of Capital Amount Capital Ratio
De Leon, Capital Php 2,000,000 20%
Garcia, Capital Php 2,000,000 20%
Manalastas, Capital Php 2,000,000 20%
Reyes, Capital Php 2,000,000 20%
Silva, Capital Php 2,000,000 20%
Total Capital Php 10,000,000 100%

Projected Financial Statements

Table 13. Pre-Operating Period Statement of Cash Flow of the Tebker Shell Unit
Converging Units
Statement of Cash Flow
Pre-Operating Period
OPERATING ACTIVITIES
Net income 0
Operating Expenses 0
Selling and Administrative Expenses 0
Payroll 0
Cash provided by operating activities 0

INVESTING ACTIVITIES
Building (5,264,976.16)
Security Equipment (27,400)
Furniture and Fixtures (245,867.30)
Cleaning Materials (1,800)
Cash used for investing activities (5,5400,043.46)
FINANCING ACTIVITIES

Cash used / Provided By Financing Activities 0

Beginning Cash 73,347
ENDING CASH BALANCE 55,238

Table 14. Pre-Operating Balance Sheet of Tebker Shell Unit

Converging Units
Pre-Operating Period
Balance Sheet
Assets
Cash 4,459,956.54
Building 5,264,976.16
Security Equipment 27,400
Furniture and Fixtures 245,867.30
Cleaning Materials 1800
Total Assets Php10,000,000

Liabilities and Owners’ Equity

Loans payable
Total Liabilities

Owners’ equity
Verde, capital 2,000,000
Pizarro, capital 2,000,000
Boado, capital 2,000,000
Nizar, capital 2,000,000
Vicente, capital 2,000,000
Total owners’ equity 2,000,000
TOTAL LIABILITIES AND Php10,000,000.00
OWNER’S EQUITY
 Table 15. Depreciation Schedule of Tebker Shell Unit

Depreciation Cost Estimated Accumulated Depreciation

Useful Life (Annual)
(In years)
Main Building 5,264,976.16 30 175,499.21
Security 27400 10 2470
Equipment
Cleaning 1800 8 224
Materials
Furniture and 245,867.30 10 24,583.73
Fixtures
Total Php 5,540,043.46 Php 202,776.94
 Table 16. Projected Income Statement for 10 Years

Tebker Shell Unit

Operating Period

Projected Income Statement

Forecasted for 10-Year Assumption

Year 1 Year 2 Year 3 Year 4 Year 5

Sales 1,296,000 1,296,000 1,296,000 1,296,000 1,296,000

Gross Profit 1,296,000 1,296,000 1,296,000 1,296,000 1,296,000

Less: Depreciation
Expenses
Main Building (175,499) (169,649.2) (163,799.3) (157,949.3) (152,099.3)

Security (2740) (2466) (2192) (1918) (1644)

Equipment
Cleaning (225) (196.88) (168.75) (140.63) (112.50)
Material
Furniture and (24,583) (22,125.36) (19,666.99) (17,208.62) (14,750.25)
Fixture
Utilities (90,000) (90,000) (90,000) (90,000) (90,000)
Expense
Net Income 1,002,942 1,011,562.5 1,020,172.9 1,028,783.5 1,037,393.9
 Tebker Shell Unit

Operating Period

Projected Income Statement

Forecasted for 10-Year Assumption

Year 6 Year 7 Year 8 Year 9 Year 10

Sales 1,296,000 1,296,000 1,296,000 1,296,000 1,296,000

Gross Profit 1,296,000 1,296,000 1,296,000 1,296,000 1,296,000

Less: Depreciation Expenses

Main (146,249.4) (140,399.4) (134,549.4) (128,699.5) (122,849.5)

Building
Security (1369) (1094) (820) (546) (272)
Equipment
Cleaning (84.37) (56.24) (28.11) (225) (196.88)
Material
Furniture and (12,291.88) (9,833.51) (7375.14) (4916.77) (2458.4)
Fixture
Utilities (90,000) (90,000) (90,000) (90,000) (90,000)
Expense
Net Income 1,046,005.4 1,054,616.7 1,063,247.3 1,071,612.8 1,080,223.2
 Figure 6. Projected Cash Flow Diagram

Computation for Present Worth Value (PW) and Internal Rate of Revenue (IRR)

At i= 12%

PWi=12% = –5,474,443.63 + 1,002,942(P/F,12%,1) + 1,011,562.52(P/F,12%,2) +

1,020,172.99(P/F,12%,3) + 1,028,783.45(P/F,12%,4) +
1,037,393.92(P/F,12%,5) + 1,046,005.39(P/F,12%,6) +
1,054,616.86(P/F,12%,7) + 1,063,247.33(P/F,12%,8) +
1,071,612.78(P/F,12%,9) + 1,080,223.24(P/F,12%,10)

PWi=12% = 375,507.222

At i= 20%

PWi=60% = –5,474,443.63 + 1,002,942(P/F,20%,1) + 1,011,562.52(P/F,20%,2) +

1,020,172.99(P/F,20%,3) + 1,028,783.45(P/F,20%,4) +
1,037,393.92(P/F,20%,5) + 1,046,005.39(P/F,20%,6) +
1,054,616.86(P/F,20%,7) + 1,063,247.33(P/F,20%,8) +
1,071,612.78(P/F,20%,9) + 1,080,223.24(P/F,20%,10)

PWi=60% = -1,162,568.282
By interpolation:

I PW
12% 375,507.222
io = 13.95% 0
60% -1,162,568.282

𝑖𝑜 − 12 0 − 375,507.222
=
20 − 12 −𝟏, 𝟏𝟔𝟐, 𝟓𝟔𝟖. 𝟐𝟖𝟐 − 𝟑𝟕𝟓, 𝟓𝟎𝟕. 𝟐𝟐𝟐
𝑖𝑜 = 13.95%

Using PW and IRR, we found out that the business is feasible since PW is greater than
0, and the IRR is greater than 12% MARR.

CONCLUSION
This aspect shows that the business will continuously grow throughout the years
of operation. The details imply the capability of business to settle its liabilities.
Throughout the operating years, efficiency is observed. Profitability is expected to be
realized since the operation of business gets more efficient as time passes by.

SOCIO-ECONOMIC FEASIBILITY
Government
To properly operate the business, it is required to pay for the following:
Barangay Clearance, Mayor’s Permit, and other documents needed to comply with the
legal requirements to start and continue the day-to-day operation of the business.
The following fees paid by the management of the business venture will help
the government to fund their future projects that may develop the operations and
projects of the government.
Taxes from the partners may also help the government for the welfare’s
development.
Other Beneficiaries
The Converging Units will not just benefit the government; but, it will also
benefit the community because of the newly offered experience the business venture
has.
CONCLUSION
The Tebker Shell Unit will be a source of income when people grab the job
opportunities given by the business venture. To properly operate the business, it is
required to pay the following: Barangay Clearance, Mayor’s Permit, and other
documents needed to comply with the legal requirement to start and to continue the
day-to-day operation of business.
APPENDICES
Appendix 1. Application Form for Mayor’s Permit
Appendix 2. Sanitary Permit
Appendix 3. Application for Sanitary/Plumbing Permit
Appendix 4. BIR Permit
Appendix 5. Fire Safety Inspection Certificate
 Appendix 6. Lease Contract
TEBKER SHELL UNIT
RENTAL AGREEMENT/DORMITORY SPACE LEASE
This rental agreement or dormitory space lease shall evidence the complete terms and
conditions under which the parties whose signatures appear herein agreed.
Landlord/Administrator of Tebker Apartment and Boarding House, Science City of
Muñoz, Nueva Ecija; Januarell A.D. Verde, Rusty Pizarro, Bonifacio R. Boado Jr.,
Renz Nizar Valentin, and Ronel Matthew J. Vicente of Tebker Co. Inc., shall be referred
to as LESSOR.
Tenants shall be referred to as LESSEE.
As consideration for this agreement, LESSOR agrees to rent to LESSEE, and
LESSEE agrees to rent from LESSOR _____ bed space unit no. _______ in Tebker
Apartment and Boarding House, Science City of Muñoz, Nueva Ecija subject to the
following terms and conditions:
1. The subject property shall be used solely as a private residence.
2. The LESSEE agrees to pay a rental fee in advance in the:
a. Amount of PHP 3,000.00 per month.

The rental fee is inclusive of electric, water bills, and internet connection. Any
other electric appliances that are not initially installed by LESSOR would need
approval from LESSOR and would be subject to separate electric bill payment
on the part of the LESSEE.

With the provision of electric, water, and internet connection for free, the
LESSOR expect each LESSEE to be conscious in using such utilities and not
indiscriminately use those so that the LESSOR can continue to provide them
for free.

The LESSEE agrees to provide a non-refundable reservation fee in the amount

of PHP 3,000.00 upon reservation of the residential unit. This reservation fee
shall be converted to security deposit upon assumption of the residential space
and shall be refunded to the LESSEE after the premises has been completely
vacated less any amount necessary to pay the LESSOR such as:
a. Any unpaid rent and utilities,
b. Cost of repair of damages to premises above ordinary wear and tear,
c. General cleaning and refurbishing so the next LESSEE will have
the unit in good condition.
3. The minimum duration of the contract is 5 months starting from the execution
of this agreement or the duration of the current semester and is renewable every
5 months or the duration of a semester or until terminated by the LESSOR.

The LESSEE must give a thirty (30) days prior notice to the date of actual
termination of contract.
4. The security deposit will be forfeited if the LESSEE terminates this agreement
before _________ month period has elapsed or if the LESSEE terminates this
agreement without giving notice of intention to terminate at least 30 days prior
to the date of termination.
 5. The LESSEE agrees to keep the premises clean at all times and in good
condition. Any damage to the property that may arise from the fault of the
LESSEE, he/she/they will be responsible to the extent of the amount of the
damage incurred.
6. The LESSEE agrees that smoking, drinking of alcoholic beverages,
consumption of prohibited drugs, and bringing deadly weapon are strictly
prohibited within the premises.
7. The LESSEE agrees not to cause or allow any noise or activities on the
premises that might disturb the peace and quiet of other lessees.
8. The LESSEE shall not paint, alter or decorate, change or install other
equipment, screws, large nails, adhesive materials, place signs, or displays in
any portion of the premises without the consent/approval of the LESSOR.
9. The LESSEE shall deposit all garbage and waste in clean and sanitary manner
to the proper receptacles and shall cooperate in keeping the property neat and
clean.
10. The LESSEE agrees to follow the house rules and regulations given by the
LESSOR, and non-obedience of the LESSEE may result to the following:
First Offense: Verbal Warning
Second Offense: Written Warning
Third Offense: Eviction from the Property
11. Grounds for immediate eviction and case shall be filed with the school,
barangay and police authority.
a. Possession of and entering/staying within the premises under the
influence of prohibited drugs.
b. Possession of and entering/staying within the premises intoxicated
with alcoholic beverages.
c. Possession of deadly weapon/s.

The undersigned LESSEE have read and understand this Rental Agreement:

LESSEE Signature over Printed Name LESSOR Signature over Printed Name
Date: Date: