4.

8 Financial Feasibility

1. Lot Acquisition
Deed of Donation

2. Land Development Cost

Total Lot Area: 1,897 square meter
PSO = 1,897 sqm x 73.33% = 1,391.75 sqm
Max ISA (Drop-Off Areas, Receiving Areas, Terminal Area, Parking
Areas, Access Roads) = 1897 sqm x 9.47% = 1,796 sqm
USA = 1,897 sqm x 17.37% = 329.55sqm
Hardscape (ISA)
1,796.46 sqm x Php 1,500.00 = Php 2,694,690.00
Softscape (USA)
329 sqm x Php 1,500.00 = Php 494,325.00
TOTAL DEVELOPMENT COST = Php 3,189,015.00
 1,545 Students

1. Construction Cost
GFA (sq. COST (per sq.
SPACE QTY TOTAL COST
m) m)

Entrance and Exit 60 2 15,000.00 1,800,000.00

Porch 3 2 10,000.00 60,000.00

Lobby 9 2 15,000.00 270,000.00

Lounge 30 2 15,000.00 900,000.00

Office 9 2 10,000.00 180,000.00

File Storage 4 2 10,000.00 80,000.00

Waiting Area 15 2 10,000.00 300,000.00

Guard House 6 2 10,000.00 120,000.00

Storage 6 2 10,000.00 120,000.00

Utilities 6 4 10,000.00 240,000.00

Dorm Room 30 193 10,000.00 57,900,000.00

Comfort Room 10 193 10,000.00 19,300,000.00

Common Dining 25 2 10,000.00 500,000.00

Parking Area 400 1 5,000.00 2,000,000.00

TOTAL Php 83,770,000.00

Table 5. Construction Cost

1. Equipment Cost

Equipment Cost No. of Items Sub- Total

CCTV Php 20,000 4 Php 80,000

Water Closet Php 6,700 8 Php 53,600

Lavatory Php 3,000 2 Php 6,000

Mirror Php 1,000 2 Php 2,000

Shelf Php 2,500 10 Php 25,000

Sofa Php 6,000 2 Php 12,000

Television Php 10,000 1 Php 10,000

Computers Php 25,000 5 Php 125,000

Boards Php 1,500 1 Php 1,500

Conference Table Php 10,000 1 Php 10,000

Shelf Php 2,500 10 Php 25,000

Office Chair Php 2,000 10 Php 20,000

Office Table Php 10,000 4 Php 40,000

Bed Php 3,000 52 Php 156,000

Double-deck Bed Php 5,000 112 Php 610,000

Dining Tables set Php 10,000 10 Php 100,000

Study Tables set Php 10,000 20 Php 200,000

Refrigerator Php 20,000 3 Php 600,000

Washing Machine Php 10,000 15 Php 150,000

Generator Php 15,000 1 Php 15,000

Water Tank Php 20,000 1 Php 20,000

TOTAL Php 2,094,500.00

Table 6. Equipment Cost

 1. Capital Breakdown
Investments Cost

Lot Acquisition Donated

Land Development Cost Php 3,189,015.00

Construction Cost Php 83,770,000.00

Equipment Cost Php 2,094,500.00

Grand Total Php 107,904,500.00

Table 7. Capital Breakdown

B. Operations Cost

1. Salary Inventory

Total Annual Salary

No. of Salary / No. of
Designation Monthly Salary (Monthly x 12 x No. Of
Employee Day Days
Employees)

6 Security Guard 400 30 Php 12,000.00 Php 864,000.00

3 Maintenance 508 30 Php 15,240.00 Php 548,640.00

3 Housekeeping 400 30 Php 12,000.00 Php 432,000.00

Dorm
2 400 30 Php 10,000.00 Php 288,000.00
Supervisor

2 Auditor 515 30 Php 15,450.00 Php 370,800.00

1 Treasurer 515 30 Php 15,450.00 Php 185,400.00

TOTAL Php 2,688,840

Table 8. Salary Inventory

 2. Lighting Load

Division Net Area Watts per sq. m Total

(sq. m)

Entrance and Exit 30 48 1,440

Porch 3 64 192

Lobby 9 128 1,152

Lounge 30 128 3,840

Office 9 128 1,152

File Storage 4 64 256

Waiting Area 15 128 1,920

Guard House 6 128 768

Storage 9 128 1,152

Utilities 6 48 288

Dorm Room 30 64 1,920

Common Comfort 10 64 640

Room

Common Bathroom 10 64 640

Common Kitchen 30 64 1,920

Common Dining 25 64 1,600

Parking Area 400 20 8,000

TOTAL Watts26,880

Table 9. Lighting Load

Total Lighting Load = 26,880 Watts or 26.880 kVA or 26.880 kW

Real Power = Apparent Power x Power Factor
Real Power = 26.880 kW x 80%
Real Power = 21.504
Average consumption per day = 8 hours
TARELCO’s average rate = Php 8.70 per kWh
Daily Consumption = 21.504kW x 20 hrs = 430.08 kWh
Monthly Consumption = 430.08 kWh x 30 days = 12,902.4 kWh
Annual Consumption = 12,902.4 kWh x 12 months = 154,828.8 kWh
Annual Lighting Load
154,828.8 kWh x Php 8.00/kWh = Php 1,238,630.4
 3. Power Load

Division Total Building Area(sq. m) Watts

Entrance & Exit 30 900 watts

Dormitory Rooms 3,750 75,000 watts

Common Spaces 954 28,620 watts

Commercial 60 1,800 watts

TOTAL 106,520 watts

Table 10. Power Load

Watts = (Building Area / 53 sqm) x 1,600 Watts

(106,320 watts / 230V) / 20 amperes circuit = 23.1130– 20 amperes circuit
Total Power Load = 106,320 or 106.32 kVA or 106.32 kW
Real Power = Apparent Power x Power Factor
106.32 kW x 80% = 85.056 kW (Real Power)
Average consumption per day = 8 hours
TARELCO’s average rate = Php 8.70 per kWh
Daily Consumption = 85.056 kW x 8 hrs = 680.448 kWh
Monthly Consumption = 680.448 kWh x 30 days = 20,413.44 kWh
Annual Consumption = 20,413.44 kWh x 12 months = 244,961.28 kWh

Annual Power Load

244,961.28 kWh x Php8.00/kWh = Php 1,959,690.24

4. Electricity Consumption

Load kWh used Php / kWh Annual Cost

333,379.58
Lighting Load Php8.70/kWh Php 1,238,630.4
4 kWh

Power Load 138,009.6

Php8.70/kWh Php 1,959,690.24
(Appliances, Outlets) kWh

TOTAL Php 3,198,320.64

Table 11. Electricity Consumption

 5. Water Consumption

 54 litters per person, per day

 54 litters x 1,545 occupants = 83,430 litters
Converted into gallons is 22,039.874gallons

Daily Consumption = (22,039.874 gallons x 1 cu. m) / 264 gal = 83.484 cu. m

Monthly Consumption = 83.484 cu. m x 30 days = 2,504.532cu. m

Annual Consumption = 2,504.532 cu. m x 12 months = 30,054.374 cu. m

Annual Water Bill 30,054.374 cu. m x Php 8.00/cu. m = Php 243,703.05

6. Breakdown of Maintenance Cost

Maintenance Annual Consumption Cost

Lighting Load Cost 31,356 kWh Php 1,238,630.4

Power & Electricity Load
452,217.6 kWh Php 1,959,690.24
Cost

Water Consumption Cost 9,933.84 cu. m Php 243,703.05

Annual Maintenance Cost 1% of Construction Cost Php 8,377,000

TOTAL PHP 11,819,023.69

Table 12. Breakdown of Maintenance Cost

 7. Cost Benefit Analysis

1. Operation Income Analysis

Dormitory Rental

Number of Monthly
Spaces No of Room Sub Total
Occupants Fee

Php
Dormitory Room 386 1,545 Php 1,545,000.00
1,000.00

TOTAL Php 1,545,000.00

Table 13. Operation Income Analysis for Dormitory Rental

Monthly Fee = Php 1,545,000.00

Annual income = Php 1,545,000.00 x 12 = Php 18,540,000.00

Commercial Area

Stall No. of Stalls Monthly Fee Sub Total

Canteen/Karinderya 6 Php 10,000.00 Php 60,000.00

TOTAL Php 60,000.00

Annual Income = Php 60,000.00 x 12 Months = Php 720,000.00

 Parking Slot

Base on P.D. 1096 National Building Code of the Philippines. Group B-

Pension/Boarding/Lodging Houses. One (1) car slot for every twenty (20) beds.

1,545 beds/20 = 77.25

Parking Area

Space No of Slots Fee Sub Total

Parking Slot 77 Php 150.00 Php 11,550.00

TOTAL Php 11,500.00

Monthly Income = Php11,500.00 x 30 days = Php 346,500.00

Annual Income = Php 346,500.00 x 12 months = Php 4,158,000.00

8. Annual Income Breakdown

Income Generator Annual Profit

Dormitory Rental Php 18,540,000.00

Commercial Area Php 720,000.00

Parking Area Php 4,158,000.00

Total Php 23,418,000.00

Table 16. Annual Income Breakdown

9. Annual Operations Cost

Annual Expense Cost

Annual Maintenance Php 11,819,023.69

Annual Employee Salary Php 2,688,840

Total Php 14,507,863.69

Table 17. Annual Operation Cost

Total Annual Income - Total Annual Expenses = Net Annual Profit

Php 14,507,863.69 – Php 23,418,000.00 = 8,910,136.31

10. Return of Investment (ROI)

*Total Project Cost

Land Development Cost + Building Cost/Construction Cost

*Total Project Cost / Net Annual Profit = Years of ROI

Php86, 959,015.00 / Php8, 910,136.31 = 9.759. Or 9 – 10 years

Therefore, all investments in:

Tarlac State University Dormitory will return in about 10 Years