CHAPTER I

EXECUTIVE SUMMARY

A. Name of Applicant

Lolita Yu Cavañas

B. Business Name

NRYC Dormitory

Figure 1. Business Logo

C. Business Location

NRYC Dormitory is located along Quezon Avenue, National Highway, Zone

I,Digos City, Davao del Sur. The location is near the Gaisano Mall of Digos. The land is

owned by the applicant herself.

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D. Brief Description

NRYC Dormitory will be a three-storey building. The ground floor is composed

of commercial rental units. Dormitory rooms are located in the second floor (for female

tenants) and the third floor (for male tenants). And there will be a parking area in front of

the building.

E. Highlight of the Major Assumption and Summary of Findings and Conclusions

A Feasibility study wouldn’t be meaningful without presentation of proper

determination of market feasibility, technical feasibility, social desirability and financial

feasibility of the proposed NYRC Dormitory. The data below are the assumed figures

utilized in describing the different aspects.

Table 1. Summary of Significant Assumptions

Figure Description Assumption
91% Computed average occupancy Increase by 2% per
rate based on competitor academic year
analysis.
Php 25,000.00 Repair for the 1st fiscal year Increase annually by 5%
4% Insurance premium rate Remain Constant
Php 500.00 Computed average utilities Will vary on the number of
expense month per renter. occupants per month. Hence,
the rate presented is
assumed to be at full
capacity.
360 Number of working days in a
-
year.
4 Number of allowed rest day
-
per month per employee.
2.8% Increase in salaries starting in
Year 4 and every other year
-
thereafter (i.e Year 6 to Year
10)
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1. Market Feasibility

The Procedure in this study determines the marketability of the business,

reasonable room rates for each type of rooms were determined and the projected

population for 10 years. For exercise of prudence, the proponents has the reasonable

assumption that the population will have a slight increase for about 2.5% annually,

this is with reference as to the peak and slack season and with amenities distinguished

from that of the others of the same line of industry. A market study is done as being

utilized as basis in income projection and in this project can share in the form of

student tenants and tenants other than students respectively.

2. Technical Feasibility

The technical aspect of this study employs specific controls for the operation of

the Dormitory and is designed for efficiency flow. The supplies are purchased from

trusted suppliers wherein durability in terms of supplies replaceable for different

years are to be accounted as what has been estimated to retire. The design of the

establishment is reasonably conducive for occupancy where safety and security are

factors the establishment are to work on to.

3. Social Desirability

The business will provide benefit to the society by way of offering job

opportunities even though the business does not require massive number of

employees but somehow help mitigate the current rate of unemployment in the

specific local area. Other than job opportunities, the business will also be paying
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taxes and other fees in which the government will benefit and lastly, the students will

also benefit for its facilities primarily for the business is concern in its tenants.

4. Financial Feasibility

One of the aspects to look forward in a feasibility study is the financial strand of

the business. The Proponents made a 10 year financial projections provided that the

estimated total cost of investment amounted to Php 30,658,125.73. The payback

period cannot be computed for the projection covers only 10 years; however it is

ascertained that whenever there will be a requirement to know when the cost will be

indemnified, a best estimation is more than 10 years. In the projection of the income

statement section, the business will incur loss at an amount equivalent to

1,058,115.93. which is a normal scenario to any start up business considering that the

operation in the first year lasted only in 3 months for the entity uses the calendar year

not that of a fiscal year. But on its second year the business is increasingly turning out

to be positive as it continues to its projection.