Castillo, Angelica ElaineLibiran, Jared RuizMontemayor, Anna CarmelaYacob, Judith Eliscia

Special project in Finance: Financial Projection for a Research Center

Name of Establishment: Ligero Research Center Bringing Knowledge at Hand

A. Establishment ObjectiveThis facility aims to assist students and researchers in the National Capital Region in their scientific endeavors by creating an encouraging research environment that keeps abreast with the latest trends in technology and science.

B.Initial CapitalIn order to establish the business, a capital worth P 100,000,000.00 is needed. The capital will cover purchase of the lot, necessary equipment for the business, construction of the building, payment for permits and salary of employees for the first year. C. Place of EstablishmentThe facility will be located at Mindanao Avenue Blk. 17, Lot 3, Sugar Subdivision, Batasan Hills, in Quezon City. The place is located near schools and universities.Lot area: 2400 sq.m.TOTAL PRICE: P 84, 000,000.00 Expense for the first year: P476,943 (payment for loan) x 12 months = P5,723,316.00D. BuildingSpecifications: The establishment will be a 4-storey building with a total floor area of 8,000 square meter and would worth P27, 000,000.00. Expenditure for the building’s construction:Average price of 600 m2 building (with labor)=P 2,000,0008,000m2 / 600m2 = 13.333...13.33... X P 2,000,000 = 26,666,667TOTAL EXPENSE FOR THE BUILDING: P27,000,000.00Floor Plan:First Floor:

Second Floor: Third Floor: Fourth Floor: E. Employees and their Yearly Salaries:In order to handle the business, the head of the establishment must hire:

Employee’s Position Estimated Yearly Salary

Manager P369,664.00 / 12 = P30, 805.33

Secretary P190,000.00 / 12 = P15,833.33

Receptionist P147,729.00 / 12 = P12,310.75

Human Resource Manager P483,231.00 / 12 = P 40,269.25

Accountant P556,333.00 / 12 = P46,361.08

Auditor P217,410.00 / 12 = P18, 117.50

Two Clerks (171,600 X 2) = P 343,200.00 / 12 = P 28,600

Two Head Chemists P400,000.00 / 12 = P 33,333.33

Two Lab Assistants (P206,608 X 2) = P413,216.00 / 12 = P 34,434.67

Two Technicians (P187,200 X 2) = P374,400.00 / 12 = P 31, 200.00

Further, the head of the establishment must enter into a contract with agencies handling security and utility services.

Agency Yearly Expense

Two Security Guards P456,000.00 / 12 = P 38, 000.00

Four Utility Personnel P738,000.00 / 12 = P 61,500.00

Total Yearly Expense for Salaries of Employees: P 13, 707,100.00

F.Employee Benefits expense

Employee Benefit Amount per employee (Per Month)

Total Yearly Expense

Social Security System P340 P340 X 14 (number of Employees) X12 =P57,120

Philhealth P200 P200 X 14 X 12= P33,600

Pag ibig Fund P200 P200 X 14 X 12= P33,600

Total Yearly expense for Employee Salarie= P124,320

G. Appliances, Fixture, and Furniture, Lab Apparatus, and Lab ChemicalsIn order for the establishment to be a conducive environment for research, purchasing the following pieces of equipment is also necessary:

Appliances, Fixture, and Furniture

Price Per unit Quantity Total Price

Small table for the reception area

P1,995 3 P5,985.00

Chair for the reception

P5,200 9 P46,800.00

Television P11,999 4 P47,996.00

3-seater Gang Chair P5,000 10 P50,000.00

Study Tables P1,000 50 P50,000.00

Computer units P24,450 54 P1,320,300.00

Chairs for the Computer units and Study Tables

P1,499 100 P149,900.00

Aircon Units P28,000 16 P448,000.00

Laptop P30,000 10 P300,000.00

Scanner P3,399 1 P3,399.00

Cash Register P10,000 2 P20,000.00

Printer P7200 3 P21,600.00

Speakers for the Conference hall (Complete set)

P100,000 1 P100,000.00

Theater seats P6500 500 P3,250,000.00

Movable Speakers P10,000 3 P30,000.00

Projectors P12,000 11 P132,000.00

Photocopy Machine P15,000 2 P30,000.00

Glass board P3500 12 P42,000.00

Office Desk, Cubicles and chairs

P8,000 15 P150,000.00

Fire extinguisher P10,000 16 P160,000.00

Toilets P3,500 24 P84,000.00

Cubicles P3,000 12 P36,000.00

Sink with faucet P3,000 8 P24,000.00

Total Expense for Appliances, Fixture, and Furniture: P6,501,980.00 The following laboratory apparatus and chemicals are also needed:

Apparatus Price Quantity Total Price (in Pesos)

Blood Pipette Shake 6 Placer 11,500.00 4 P 46,000.00

Centrifuge 12 Placer 25,000.00 2 P 50,000.00

Bunsen Burner 590 12 P 7080.00

Cover Slip 45 16 P 720.00

Glass Slide (50 items) 300 16 P 4800.00

Safety Goggles 43 60 P 2580.00

Cole-Parmer StableTemp Economical Gravity Convection Oven, 1.7 cu ft

1,100.000 USD

4 P207,660.20

Microwave Oven, 1200 Watts, 2.2 Cu. Ft. (white),120V

357.00 USD 8 P134,504.72

Funnel Glass 150 32 P 4,800.00

Alcohol Lamp 38 32 P 1,216.00

Measuring Cup 14 60 P 840.00

Mortar and Pestle 245 8 P 1,960.00

Petri Dish 95 32 P 3,040.00

Pipette Tip Rack 520 8 P 4,160.00

Stirring Rod 60 16 P 960.00

Test tube 10.5 400 P4,200.00

Vacutainer Tube 415 60 P24,900.00

Forcep Jar 455 32 P14,560.00

Magnifying Glass 80 20 P1,600.00

Mixing Bowl (Stainless) 75 40 P3,000.00

Straining Rack 300 20 P6,000.00

Test Tube Rack (50 tubes capacity) 520 8 P4,160.00

Tripod 145 8 P1,160.00

Specimen Bottle 10 400 P4,000.00

Digital Orbita Shaker 62,500 4 P250,000.00

Differential Blood Cell Counter 8 Keys

6,900.00 4 P27,600.00

Water Purifier 2,471.00 USD 2 P232,745.96

(for extraction): Mojonnier Glass Extraction Flask, 25 mL; 1/PK

87 USD 4 P16,389.24

Kimax 586000-0023 Soxhlet Extractor body; 300 mL; 1/PK

272.00 USD 4 P51,239.92

Friedrich condenser 230.00 USD 4 P4,332.88

Electrothermal EMEA Electromantle 3-Place Extraction Heater/Stirrer

2,870.00 USD 4 P540,656.32

Soxhlet extraction glassware systems

493.00 USD 4 P9,2827.00

Soxhlet Flat bottom flask 60.50 USD 4 P11,397.32

Glass board 3500 4 P14,000.00

Laboratory Refrigerator 90,000 7 P630,000.00

Total expense for Apparatus: P 4, 810,179.12

Chemical NamePrice (In

peso) Quantity Total Price

Acetic Acid, glacial 1.25/mL 10l

(1.25 X 10,000) =

P12,500.00

Acrylamide 2.50/g 5kg

(2.50 X 5,000) =

P12,500.00

Activated Charcoal 1/g 5kg(1X5,000) =P 5,000.00

Aluminum nitrate 5/g 5kg(5 X 5,000)=P25,000.00

Ammonia solution (28%) 1/mL (1 X

50l50,000)=

P50,000.00

Ammonium sulfate 1/g 10kg

(1 X 10,000)=

P10,000.00

Benzene 1.50 /mL 10l

(1.5 X 10,000)=

P15,000.00

Benzidine 2/g 10kg

(2 X 20,000)=

P20,000.00

Boric Acid 1.25/g 10kg

(1.25 X 10,000)=

P12,500.00

Brass 1.50/g 10kg

(1.5 X 10,000)=

P15,000.00

4-bromophenol 7/g5kg (7 X 5,000)=

P45,000.00

Bromophenol Blue 50/g

.

5 kg

(50 X 5,000)=

P250,000.00

Buffer additive for free chlorine residual 1/g 10kg

(1 X 10,000)=

P10,000.00

n-butanol 1.50/mL 10l

(1.5 X 10,000)=

P15,000.00

Calcium chloride 5/g 10kg

(5 X 10,000)=

P50,000.00

Camphene 1/mL (1 X

10l10,000)=

P10,000.00

Carbinol 1/g 10kg

(1 X 10,000)=

P10,000.00

Carbon tetrachloride 1/mL 10l

(1 X 10,000)=

P10,000.00

Celite 545 2.50/g 10kg

(2.5 X 10,000)=

P25,000.00

charcoal, replacement 1.25/g 10kg

(1.25 X 10,000)=

P12,500.00

chloride, soluble 1/g 10kg

(1 X 10,000)=

P10,000.00

Chloroform 2/mL 10l

(2 X 10,000)=

P20,000.00

chromic acid 1.25/g 10kg

(1.2 X 10,000)=

P12,500.00

citric acid 1.50/g 10kg

(1.5 X 10,000)=

P15,000.00

copper oxide 5/g 5kg(5 X 5,000)= P25,000.00

copper oxide, copper form 5/g 5kg(5 X 5,000)=P25,000.00

dextrose, anhydrous 1/g (1 X 10,000)=

50kg P50,000.00

Ethanol 1.50/g 10kg

(1.5 X 10,000)=

P15,000.00

Ethylene Diamine 1.50/mL 10l

(1.5 X 10,000)=

P15,000.00

Ferric Ammonium citrate 1/g 10kg

(1 X 10,000)=

P10,000.00

Folic Acid 30/g 5kg

(30 X 5,000)=

P150,000.00

Formaldehyde solution (37%) 1/mL 10l

(1 X 10,000)=

P10,000.00

Gelatin for microbiology 2.25/g 10kg

(2.25 X 10,000)= P22,500.00

Glycerin 2.25/g 10kg

(2.25 X 10,000)=

P22,500.00

Gum, Arabic 4/g 10kg

(4 X 10,000)=

P40,000.00

Hydrochloric Acid 1.50/mL 10l

(1.5 X 10,000)=

P15,000.00

Lactic Acid* 1/mL 10l

(1 X 10,000)=

P10,000.00

Lactose 1/g (1 X 10,000)=

10kg P10,000.00

Paraffin Wax 1/g 10kg

(1 X 10,000)=

P10,000.00

Lead nitrate 3/g 10kg

(3 X 10,000)=

P30,000.00

Potassium Chlorate 1.50/g 10kg

(1.5 X 10,000)=

P15,000.00

Potassium Nitrate 7/g 5kg(7 X 5,000)=P45,000.00

Potassium permanganate 2/g 10kg

(2 X 10,000)=

P20,000.00

Propanol 1/mL 10l(1 X 10,000)=

P10,000.00

Riboflavin 2.50/g 10kg

(2.5 X 10,000)=

P25,000.00

Saccharose 1/g 10kg(1 X 10,000)=

P10,000.00

Silica Gel 1/g 10kg(1 X 10,000)=

P10,000.00

Sodium acetate 1/g 10kg(1 X 10,000)= P10,000.00

Sodium Carbonate 1.50/g 10kg

(1.5 X 10,000)=

P15,000.00

Starch, soluble 1.75/g

10kg

(1.75 X 10,000)=

P17,500.00

Starch, potato 5/g 10kg

(5 X 10,000)=

P50,000.00

Sucrose 1/g 10kg(1 X 10,000)=

P10,000.00

Sulfur Powder 1/g 10kg(1 X 10,000)=

P10,000.00

Tin Metal 7/g 10kg

(7 X 10,000)=

P70,000.00

Urea 2/g 10kg

(2 X 10,000)=

P20,000.00

Zinc Metal 1.50/g 10kg

(1.5 X 10,000)=

P15,000.00

Approximate Total Yearly Expense for Chemicals: P1,217,500 x 12 = P 14,610,000 H. Maintenance

Service Cost (Annual)

Electricity P 500,000.00

Water P 150,000.00

Television and Internet subscription (PLDT Power Plus Plan + Cignal)

P 420,000.00

EBSCO and Proquest Subscriptions P 15,500.00

Total: P 1,385, 500I. Business Registration

Process Cost

Verification and Reservation of Company Name in SEC

P 40.00

Notarization of Articles of incorporation and treasurer’s affidavit

P 500.00

Registration of company in SEC and receipt of TIN number

P 202, 980.00

Issuance of SEC certificate of incorporation

P 500.00

Obtaining of business permit to operate from BPLO

P 252,854.50

Buying of special books of account at bookstore

P 400.00

Application of COR and TIN at the BIR P 115.00

Payment of registration fee and documentary stamp taxes

P 4,670.00

Printing of Receipts and Invoices P 3,500.00

Obtaining of certified true copy of the land title from the RD

P 160.00

Obtaining of lot map from geodetic engineer

P 1,250.00

Obtaining of Barangay Clearance P 300.00

Application for locational clearance at CPDO

P 45.00

Notarization of locational clearance application

P 50.00

Obtaining of locational clearance from CPDO

P 5,400.00

Application and Obtaining of FSEC from BFP

P 11,110.00

Application and Obtaining of building permit from OBO

P 72,000

Obtaining of health certificate from the CHO

P 400.00

Obtain the certificate of Occupancy from the OBO

P 160,000.00

Obtain electricity connection from MERALCO

P 564,490.00

Obtain water and sewage connection from Maynilad

P 6,855.00

Preparation of notarized deed of sale and other documents

P 1,500.00

Obtaining certified true copy of latest tax declaration

P 728, 135.00

Obtaining of tax clearance certificate of real property taxes

P 65.00

Obtaining certificate P 115.00

Pay documentary stamp tax and creditable withholding tax

P 1,665,000.00

Pay the transfer tax at the CTO P 832,500.00

Secure registration with the Register of Deeds (RD)

P 456,103.00

Total Expense for Registration: P 4,971,037.00

J. Target MarketBeing a research and an educational establishment, this facility is intended for high school, undergraduate and graduate students, and other people who are in need of a conducive place for learning and assistance in their research projects.

K. Products, Rentals and Services OfferedProducts:

PRODUCT PRICE

Cat Cadaver P1,000

Frog P50

Chemical/s Price of the chemicals listed on part F, fourth table will be multiplied by 2

Rentals:

Facility Price (per hour)

Conference hall P15,000 (Basis: BGPOP rentals)

Rooftop P8,000 (Basis: Events place price)

Laboratory (use of several lab apparatus included)

P400 on weekdays P500 on Saturdays and Sundays (Basis: http://www.upenn.edu/computing/isc/training/lab/)

Laboratory (use of all lab apparatus ) P1,000

Computer unit (use of EBSCO and Proquest included)

P25 (Basis typical comp shop price)

Discussion Room P100

Services

Service/ Test Price

Biological Tests:

- Test on veterinary, pharmaceutical, and biological products:

- Efficacy tests on biocides- Tests on cosmetics, perfumes and

essential oils- Microbiological tests on foods and

beverages- Microbiological tests on packaging

materials

P6,000 (base price but the price would increase depending on the materials used within the discretion of the lab employee)

- microbiological tests on non-food/non-pharmaceutical products

- Microbial test of waters, including effluents

Chemical tests:- Inorganic Chemistry (Waters;

Miscellaneous materials and products)

- Organic Chemistry (Foods; Agricultural Products and Materials)

P4,000 (base price but would increase depending on the materials used within the discretion of the lab employee)

L. SWOT Analysis

STRENGTHS WEAKNESSES

- Unlike other research facilities, this establishment offers a sophisticated and high class learning area.

- Some of the laboratory apparatus would not be found in most typical laboratories

- The place is spacious.

- The establishment will be open for weekends for those who need to study or are in need of a specimen for the following week

- Services offered by the business is a necessity especially for students

- The business is somehow seasonal, especially during vacation months

- The place of establishment is prone to floods

- The facilities, especially the laboratory and the computer area, is high maintenance

- Rarity and the expensiveness of some of the laboratory apparatus. The price would be steep if the apparatus were to be repaired

OPPORTUNITIES THREATS

- ASEAN Integration is presumed to be beneficial as it would bring additional clients.

- Low number of competitors in the area

- The possible presence of new competitors throughout the area

- The schools and universities where the most of the target markets study also have laboratories

- The introduction of new curriculum due to the K-12 program will cause a decrease in the number of clients

M. Marketing Strategies

Advertisement type Cost

Flyers (1000 copies) P1000 (will be distributed before the first month of opening)

Brochures (1000 copies) P2000 (will be distributed before the first month of opening)

Partnerships with schools Free

Social networking site advertisements Free

Total Expense for Marketing: P 3,000

N. INCOME ASSUMPTIONS

Income from RENTALS:1. Conference Hall

Average usage: 5x a monthP 15, 000 x 5 times per month x 5 hours per day = P 375, 000 x 12 months = P 4, 500, 000 2. Events Place (Rooftop)Average usage: 10x a monthP 8,000 x 10 times per month x 10 hours per day = 800,000 x 12 months = P 9, 600, 000 3. Laboratory (not all equipment)Average usage: 3x a day, 72x a monthP 450 x 3 times a month x 3 hours a day x 24 days = P 97, 200 x 12 months = P 1, 116, 000P 400 x 3 times x 3 hours per day x 16 days (weekdays) = P 19, 200 x 12 months = P 230,400P500 x 3 times x 3 hours per day x 8 days (weekends) = P 12, 000 x 12 months = P 144, 000 4. Laboratory (all equipment)Average use: 3x a day, 72x a monthP 1,000 x 3 times x 3 hours per day x 24 days = P 216, 000 x 12 months = P 2, 592, 000

5. Discussion RoomsP 150 x 5 hours per day x 26 days a month = P 19, 500 x 12 months = P 234,000 6. Computer

Income from sold products1. Frogs35 frogs per day x 16 days x P 50 = P 28, 000 x 12 months = P 336, 00035 frogs per day x 24 days x P50 = P 42, 000 x 12 months = P 504, 000 2. Frozen Cat specimen5 cats per day x 24 days x P1, 000 = P 120, 000 x 12 months = P 1, 440, 000 3. FormalinP 200, 000 4. EthanolP 300, 000

5.Sulfur powder

P 200, 000 6. AmmoniaP 200, 000 7. CharcoalP 200, 000 8. Replaced CharcoalP 250, 000 9. GelatinP 450, 000 10. StarchP 350, 000

SUBTOTAL FOR PRODUCTS, AND RENTALS:P 20, 672, 000 SERVICES

Month Expected number of customers who will avail the services

January 20

February 20

March 15

April 5

May 5

June 5

July 10

August 35

September 40

October 45

November 45

December 50

Total estimated yearly customers: 325YEARLY GROWTHYEAR 1: P 20, 438, 000YEAR 2: P 20, 499, 314YEAR 3: P 21, 524, 279.70YEAR 4: P 23, 270, 222.08YEAR 5: P 25, 597, 244.29

An owner's compensation should not be lower than his distribution. The loan from BPI is P 84, 000, 000, the total capital needed for the business is P 100, 000, 000. The capital less the loan is divided to 4 parts for each shareholder. The part is equal to P 340, 000. Thus, we derived that it is proper to give the owner an amount of P 550, 000, the average salary of a Filipino in the upper class, an amount more than their distributionsh in the capital.