PROJECT NAME: RICE MILL

OWNER: DAVID L. PITAO

LOCATION: BRGY. CASILI-ON, VILLABA, LEYTE

PROJECT INVESTMENT CAPITAL:

FIXED INVESTMENT:PARTICULARS AMOUNT (PhP)

Cono Rice Mill (Single Pass) 21,000.00 Diesel Engine (4DR5) 45,000.00 Installation Cost 15,000.00 Building/Shed House 100,000.00 Weighing Scale 5,000.00 Service Vehicle (Suzuki Pick-up) 95,000.00

SUB-TOTAL 281,000.00

OPERATIONAL/WORKING CAPITAL:

Direct Labor 18,450.00 Fuel & Oil/Lubricants 79,110.00 Repair & Maintenance 44,200.00 Permit & Licenses 3,500.00

SUB-TOTAL 145,260.00

TOTAL PROJECT COST: 426,260.00

NPV 49,225.60 IF: NPV > 1: FEASIBLE NA BAY!!!BCR 1.06 IF: BCR > 1: FEASIBLE NA BAY !!!IRR 25.24%ROI 23.21

PAYBACK 4.31 Years

FINANCIAL ANALYSIS

Name of Project: RICE MILL PROJECTLocation : Brgy. CASILI-ON, VILLABA, LEYTE

Year Cost Benefit Net Return DiscountedProject Cost Operating Cost TOTAL COST Cost @ 30%

0.30 281,000.00 281,000.00 -281,000.00 281,000.001 145,260.00 145,260.00 208,000.00 62,740.00 111,738.462 150,313.00 150,313.00 218,400.00 68,087.00 88,942.603 155,618.65 155,618.65 229,320.00 73,701.35 70,832.344 161,189.58 161,189.58 240,786.00 79,596.42 56,436.955 167,039.06 167,039.06 252,825.30 85,786.24 44,988.486 173,181.01 173,181.01 265,466.57 92,285.55 35,878.997 179,630.07 179,630.07 278,739.89 99,109.83 28,626.988 186,401.57 186,401.57 292,676.89 106,275.32 22,850.879 193,511.65 193,511.65 307,310.73 113,799.09 18,248.07

10 200,977.23 200,977.23 322,676.27 121,699.04 14,578.52TOTAL 281,000.00 1,713,121.82 1,994,121.82 2,616,201.65 622,079.83 774,122.26

NPV @ 30% (31,099.14)IRR 25.24%BCR 0.95ROI 0.23Payback Period 4.31

Sensitivity Analysis Summary

Condition NPV @ 18% BCR IRRBase Situation -31,099.14 0.95 25.24%5% increase in cost 68,038.85 1.07 22.25%

10% increase in cost 33,852.57 1.01 19.17%5% decrease in benefit 50,815.52 1.05 20.73%10% decrease in benefit (594.08) 0.98 15.94%

Break-Even Point (BEP) Analysis

Fixed Cost Fixed Cost #REF! Rental -------------------- + Variable Cost/Hectare Variable Cost/Ha 650.40

Area Rental/Ha 1.00 Target Area (Ha) 150.0

#REF!= --------------------- + 650.40

150.00 BEP, Rental #REF!BEP, Area #REF!

= #REF!

Fixed Cost Area = '--------------------

Rental-Variable Cost

= #REF!

FINANCIAL ANALYSIS SENSITIVITY ANALYSIS

5% increase in cost

Discounted Year Cost Benefit Net Revenue DiscountedBenefit @ 30% Cost @ 16%

0.3 0.160.00 0 281,000.00 (281,000.00) 281,000.00

160,000.00 1 152,523.00 208,000.00 55,477.00 131,485.34129,230.77 2 157,828.65 218,400.00 60,571.35 117,292.40104,378.70 3 163,399.58 229,320.00 65,920.42 104,683.20

84,305.87 4 169,249.06 240,786.00 71,536.94 93,474.7568,093.20 5 175,391.01 252,825.30 77,434.29 83,505.9454,998.36 6 181,840.07 265,466.57 83,626.50 74,634.8544,421.75 7 188,611.57 278,739.89 90,128.32 66,736.3435,879.11 8 195,721.65 292,676.89 96,955.24 59,700.0828,979.28 9 203,187.23 307,310.73 104,123.50 53,428.6923,406.34 10 211,026.09 322,676.27 111,650.18 47,836.15

733,693.37 TOTAL 2,079,777.91 2,616,201.65 536,423.74 1,113,777.75NPV @ 16% 68,038.85 IRR 22.25%BCR 1.07

5% decrease in benefitDiscounted

Year Cost Benefit Net Revenue Cost @ 16%0.16

0 281,000.00 -281,000.00 281,000.00 1 145,260.00 197,600.00 52,340.00 125,224.14 2 150,313.00 207,480.00 57,167.00 111,707.05 3 155,618.65 217,854.00 62,235.35 99,698.28 4 161,189.58 228,746.70 67,557.12 89,023.57

5 167,039.06 240,184.04 73,144.97 79,529.47 6 173,181.01 252,193.24 79,012.22 71,080.81 7 179,630.07 264,802.90 85,172.83 63,558.42 8 186,401.57 278,043.04 91,641.47 56,857.22 9 193,511.65 291,945.20 98,433.55 50,884.46

10 200,977.23 306,542.46 105,565.23 45,558.24 TOTAL 1,994,121.82 2,485,391.57 491,269.75 1,074,121.67

NPV @ 18% 50,815.52 IRR 20.73%BCR 1.05

10% increase in cost

Discounted Year Cost BenefitBenefit @ 16%

0.160 281,000.00

179,310.34 1 159,786.00 208,000.00 162,306.78 2 165,344.30 218,400.00 146,915.62 3 171,180.52 229,320.00 132,983.96 4 177,308.54 240,786.00 120,373.42 5 183,742.97 252,825.30 108,958.70 6 190,499.12 265,466.57

98,626.41 7 197,593.07 278,739.89 89,273.90 8 205,041.73 292,676.89 80,808.27 9 212,862.81 307,310.73 73,145.42 10 221,074.95 322,676.27

1,192,702.81 TOTAL 2,165,434.00 2,616,201.65NPV @ 16%IRRBCR

10% decrease in benefitDiscounted

Benefit @ 16% Year Cost Benefit0.16

0 281,000.00 170,344.83 1 145,260.00 187,200.00 154,191.44 2 150,313.00 196,560.00 139,569.84 3 155,618.65 206,388.00 126,334.77 4 161,189.58 216,707.40

114,354.75 5 167,039.06 227,542.77 103,510.76 6 173,181.01 238,919.91

93,695.09 7 179,630.07 250,865.90 84,810.21 8 186,401.57 263,409.20 76,767.86 9 193,511.65 276,579.66 69,488.15 10 200,977.23 290,408.64

1,133,067.67 TOTAL 1,994,121.82 2,354,581.48 NPV @ 18%IRRBCR

Net Revenue Discounted DiscountedCost @ 18% Benefit @ 18%

0.18 0.18 (281,000.00) 281,000.00 48,214.00 135,411.86 176,271.19 53,055.70 118,747.70 156,851.48 58,139.48 104,185.75 139,571.23 63,477.46 91,453.77 124,194.74 69,082.33 80,315.74 110,512.27 74,967.45 70,566.88 98,337.19 81,146.82 62,029.41 87,503.43 87,635.16 54,548.92 77,863.22 94,447.92 47,991.21 69,285.07 101,601.32 42,239.57 61,651.97

450,767.65 1,088,490.83 1,102,041.7933,852.57

19.17%1.01

Discounted DiscountedNet Revenue Cost @ 18% Benefit @ 18%

0.18 0.18-281,000.00 281,000.0041,940.00 123,101.69 158,644.0746,247.00 107,952.46 141,166.3350,769.35 94,714.31 125,614.1155,517.82 83,139.79 111,775.27

60,503.71 73,014.31 99,461.0465,738.89 64,151.71 88,503.4771,235.84 56,390.37 78,753.0977,007.63 49,589.93 70,076.9083,068.01 43,628.38 62,356.5689,431.41 38,399.61 55,486.77

360,459.66 1,015,082.57 991,837.61 (594.08)15.94%

0.98

Schedule 5

FUEL, OIL AND LUBRICANTS

Year Diesel Consumption Working Hours/Year Cost of Diesel Annual Diesel Lubricants Total CostCost (20% of cost of diesel)

1 12.5 360 14.65 65,925.00 13,185.00 79,110.00 2 12.5 360 15.38 69,221.25 13,844.25 83,065.50 3 12.5 360 16.15 72,682.31 14,536.46 87,218.78 4 12.5 360 16.96 76,316.43 15,263.29 91,579.71 5 12.5 360 17.81 80,132.25 16,026.45 96,158.70 6 12.5 360 18.70 84,138.86 16,827.77 100,966.63 7 12.5 360 19.63 88,345.81 17,669.16 106,014.97 8 12.5 360 20.61 92,763.10 18,552.62 111,315.71 9 12.5 360 21.64 97,401.25 19,480.25 116,881.50

10 12.5 360 22.73 102,271.31 20,454.26 122,725.58

* Lubricants which include engine oil, hydraulic & transmission fluids, filters, and greases constitute some 20% of the total annual fuel cost.

Schedule 2

DIRECT LABOR

Position No. of Laborer Rate per Day Working Days-Year 1 Total AmountOperator 1 120.00 90 10,800.00 Laborer 1 85.00 90 7,650.00

205.00 90 18,450.00

Year No. of Laborer Rate per Day Working Days /Year Total Amount1 2 205.00 90 18,450.00 2 2 215.25 90 19,372.50 3 2 226.01 90 20,341.13 4 2 237.31 90 21,358.18 5 2 249.18 90 22,426.09 6 2 261.64 90 23,547.39 7 2 274.72 90 24,724.76 8 2 288.46 90 25,961.00 9 2 302.88 90 27,259.05

10 2 318.02 90 28,622.01

Schedule 3

DEPRECIATION EXPENSE

Item Acquisition Cost Estimated Life Annual Depreciation

Cono Rice Mill 21,000.00 10 2,100.00 Diesel Engine 45,000.00 10 4,500.00 Installation Cost 15,000.00 10 1,500.00 Building 100,000.00 10 10,000.00 Weighing Scale 5,000.00 10 500.00 Service Vehicle 65,000.00 10 6,500.00 Total 251,000.00 25,100.00

Schedule 1

RICE MILL CUSTOM SERVICE FEES

Year OUTPUT (Kls.) RATE/KL. (PhP) INCOME (PhP)1 208,000.0 1.00 208,000.00 2 208,000.0 1.05 218,400.00 3 208,000.0 1.10 229,320.00 4 208,000.0 1.16 240,786.00 5 208,000.0 1.22 252,825.30 6 208,000.0 1.28 265,466.57 7 208,000.0 1.34 278,739.89 8 208,000.0 1.41 292,676.89 9 208,000.0 1.48 307,310.73 10 208,000.0 1.55 322,676.27

PROJECTED INCOME STATEMENT

PARTICULARS Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

INCOME

Milling Service fees 208,000.00 218,400.00 229,320.00 240,786.00 252,825.30 265,466.57 278,739.89 292,676.89 307,310.73 322,676.27

GROSS INCOME 208,000.00 218,400.00 229,320.00 240,786.00 252,825.30 265,466.57 278,739.89 292,676.89 307,310.73 322,676.27

Less: EXPENSES

Direct Labor 18,450.00 19,372.50 20,341.13 21,358.18 22,426.09 23,547.39 24,724.76 25,961.00 27,259.05 28,622.01

Salaries/Wages - - - - - - - - - -

Fuel, Oil & Lubricants 79,110.00 83,065.50 87,218.78 91,579.71 96,158.70 100,966.63 106,014.97 111,315.71 116,881.50 122,725.58

Repairs and Maintenance 44,200.00 44,200.00 44,200.00 44,200.00 44,200.00 44,200.00 44,200.00 44,200.00 44,200.00 44,200.00

Depreciation 25,100.00 25,100.00 25,100.00 25,100.00 25,100.00 25,100.00 25,100.00 25,100.00 25,100.00 25,100.00

Permit & Licenses 3,500.00 3,675.00 3,858.75 4,051.69 4,254.27 4,466.99 4,690.33 4,924.85 5,171.09 5,429.65

Total Expenses 170,360.00 175,413.00 180,718.65 186,289.58 192,139.06 198,281.01 204,730.07 211,501.57 218,611.65 226,077.23

NET INCOME ( Before Tax ) 37,640.00 42,987.00 48,601.35 54,496.42 60,686.24 67,185.55 74,009.83 81,175.32 88,699.09 96,599.04

PROJECTED CASH FLOW STATEMENT

PARTICULARS Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

CASH INFLOW

Investment Capital 281,000.00

Custom Service Fees 208,000.00 218,400.00 229,320.00 240,786.00 252,825.30 265,466.57 278,739.89 292,676.89 307,310.73 322,676.27

Total Cash Inflow 281,000.00 208,000.00 218,400.00 229,320.00 240,786.00 252,825.30 265,466.57 278,739.89 292,676.89 307,310.73 322,676.27

CASH OUTFLOW

Building/Shed Construction 100,000.00

Purchase of Equipment 181,000.00

Direct Labor 18,450.00 19,372.50 20,341.13 21,358.18 22,426.09 23,547.39 24,724.76 25,961.00 27,259.05 28,622.01

Salaries/Wages - - - - - - - - - -

Fuel, Oil & Lubricants 79,110.00 83,065.50 87,218.78 91,579.71 96,158.70 100,966.63 106,014.97 111,315.71 116,881.50 122,725.58

Repairs and Maintenance 44,200.00 44,200.00 44,200.00 44,200.00 44,200.00 44,200.00 44,200.00 44,200.00 44,200.00 44,200.00

Permit & Licenses 3,500.00 3,675.00 3,858.75 4,051.69 4,254.27 4,466.99 4,690.33 4,924.85 5,171.09 5,429.65

Total Cash Outflow 281,000.00 145,260.00 150,313.00 155,618.65 161,189.58 167,039.06 173,181.01 179,630.07 186,401.57 193,511.65 200,977.23

Cash Balance, Ending - 62,740.00 68,087.00 73,701.35 79,596.42 85,786.24 92,285.55 99,109.83 106,275.32 113,799.09 121,699.04

Add: Cash Balance, Beginning - 62,740.00 130,827.00 204,528.35 284,124.77 369,911.01 462,196.56 561,306.38 667,581.70 781,380.79

NET CASH FLOW - 62,740.00 130,827.00 204,528.35 284,124.77 369,911.01 462,196.56 561,306.38 667,581.70 781,380.79 903,079.83

PROJECTED BALANCE SHEET

PARTICULARS Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

ASSETS

Cash on Hand 62,740.00 130,827.00 204,528.35 284,124.77 369,911.01 462,196.56 561,306.38 667,581.70 781,380.79 903,079.83

Equipment/Building 281,000.00 281,000.00 281,000.00 281,000.00 281,000.00 281,000.00 281,000.00 281,000.00 281,000.00 281,000.00

Less: Depreciation 25,100.00 50,200.00 75,300.00 100,400.00 125,500.00 150,600.00 175,700.00 200,800.00 225,900.00 251,000.00

TOTAL ASSETS 318,640.00 361,627.00 410,228.35 464,724.77 525,411.01 592,596.56 666,606.38 747,781.70 836,480.79 933,079.83

LIABILITIES & EQUITY

Owner's Equity 281,000.00 281,000.00 281,000.00 281,000.00 281,000.00 281,000.00 281,000.00 281,000.00 281,000.00 281,000.00

Retained Earnings 37,640.00 80,627.00 129,228.35 183,724.77 244,411.01 311,596.56 385,606.38 466,781.70 555,480.79 652,079.83

TOTAL LIABILITIES & EQUITY 318,640.00 361,627.00 410,228.35 464,724.77 525,411.01 592,596.56 666,606.38 747,781.70 836,480.79 933,079.83

FINANCIAL ANALYSIS

Name of Project: RICE MILL PROJECTLocation : Brgy. Casili-on, Villaba, Leyte

Year Cost Benefit Net Return Discounted DiscountedProject Cost Operating Cost TOTAL COST Cost @ 20% Benefit @ 20%

0.2 0.20 281,000.00 281,000.00 -281,000.00 281,000.00 0.001 145,260.00 145,260.00 208,000.00 62,740.00 121,050.00 173,333.332 150,313.00 150,313.00 218,400.00 68,087.00 104,384.03 151,666.673 155,618.65 155,618.65 229,320.00 73,701.35 90,057.09 132,708.334 161,189.58 161,189.58 240,786.00 79,596.42 77,734.17 116,119.795 167,039.06 167,039.06 252,825.30 85,786.24 67,129.25 101,604.826 173,181.01 173,181.01 265,466.57 92,285.55 57,997.97 88,904.227 179,630.07 179,630.07 278,739.89 99,109.83 50,131.45 77,791.198 186,401.57 186,401.57 292,676.89 106,275.32 43,351.05 68,067.299 193,511.65 193,511.65 307,310.73 113,799.09 37,503.85 59,558.88

10 200,977.23 200,977.23 322,676.27 121,699.04 32,458.94 52,114.02TOTAL 281,000.00 1,713,121.82 1,994,121.82 2,616,201.65 622,079.83 962,797.81 1,021,868.53

NPV @ 20% 49,225.60 IRR 25.24%BCR 1.06ROI 23.21Payback Period 4.31

Sensitivity Analysis Summary

Condition NPV @ 20% BCR IRRBase Situation 49,225.60 1.06 25.24%5% increase in cost 20,817.36 1.03 22.25%10% increase in cost (7,590.88) 0.99 19.17%5% decrease in benefit 6,647.74 1.05 20.73%10% decrease in benefit (35,930.11) 0.96 15.94%

SENSITIVITY ANALYSIS

5% increase in cost

Year Cost Benefit Net Revenue Discounted DiscountedCost @ 20% Benefit @ 20%

0.2 0.20 281,000.00 (281,000.00) 281,000.001 152,523.00 208,000.00 55,477.00 127,102.50 173,333.332 157,828.65 218,400.00 60,571.35 109,603.23 151,666.673 163,399.58 229,320.00 65,920.42 94,559.94 132,708.334 169,249.06 240,786.00 71,536.94 81,620.88 116,119.795 175,391.01 252,825.30 77,434.29 70,485.72 101,604.826 181,840.07 265,466.57 83,626.50 60,897.87 88,904.227 188,611.57 278,739.89 90,128.32 52,638.03 77,791.198 195,721.65 292,676.89 96,955.24 45,518.60 68,067.299 203,187.23 307,310.73 104,123.50 39,379.05 59,558.88

10 211,026.09 322,676.27 111,650.18 34,081.89 52,114.02TOTAL 2,079,777.91 2,616,201.65 536,423.74 996,887.71 1,021,868.53

NPV @ 20% 20,817.36 IRR 22.25%BCR 1.03

5% decrease in benefitDiscounted Discounted

Year Cost Benefit Net Revenue Cost @ 16% Benefit @ 16%0.16 0.16

0 281,000.00 -281,000.00 281,000.00 1 145,260.00 197,600.00 52,340.00 125,224.14 170,344.832 150,313.00 207,480.00 57,167.00 111,707.05 154,191.443 155,618.65 217,854.00 62,235.35 99,698.28 139,569.844 161,189.58 228,746.70 67,557.12 89,023.57 126,334.775 167,039.06 240,184.04 73,144.97 79,529.47 114,354.756 173,181.01 252,193.24 79,012.22 71,080.81 103,510.767 179,630.07 264,802.90 85,172.83 63,558.42 93,695.098 186,401.57 278,043.04 91,641.47 56,857.22 84,810.219 193,511.65 291,945.20 98,433.55 50,884.46 76,767.86

10 200,977.23 306,542.46 105,565.23 45,558.24 69,488.15TOTAL 1,994,121.82 2,485,391.57 491,269.75 1,074,121.67 1,133,067.67

NPV @ 20% 6,647.74 IRR 20.73%BCR 1.05

10% increase in cost

Year Cost Benefit Net Revenue Discounted DiscountedCost @ 20% Benefit @ 20%

0.2 0.20 281,000.00 (281,000.00) 281,000.001 159,786.00 208,000.00 48,214.00 133,155.00 173,333.332 165,344.30 218,400.00 53,055.70 114,822.43 151,666.673 171,180.52 229,320.00 58,139.48 99,062.80 132,708.334 177,308.54 240,786.00 63,477.46 85,507.59 116,119.795 183,742.97 252,825.30 69,082.33 73,842.18 101,604.826 190,499.12 265,466.57 74,967.45 63,797.77 88,904.227 197,593.07 278,739.89 81,146.82 55,144.60 77,791.198 205,041.73 292,676.89 87,635.16 47,686.15 68,067.299 212,862.81 307,310.73 94,447.92 41,254.24 59,558.88

10 221,074.95 322,676.27 101,601.32 35,704.84 52,114.02TOTAL 2,165,434.00 2,616,201.65 450,767.65 1,030,977.60 1,021,868.53

NPV @ 20% (7,590.88)IRR 19.17%BCR 0.99

10% decrease in benefitDiscounted Discounted

Year Cost Benefit Net Revenue Cost @ 20% Benefit @ 20%0.20 0.20

0 281,000.00 -281,000.00 281,000.001 145,260.00 187,200.00 41,940.00 121,050.00 156,000.002 150,313.00 196,560.00 46,247.00 104,384.03 136,500.003 155,618.65 206,388.00 50,769.35 90,057.09 119,437.504 161,189.58 216,707.40 55,517.82 77,734.17 104,507.815 167,039.06 227,542.77 60,503.71 67,129.25 91,444.346 173,181.01 238,919.91 65,738.89 57,997.97 80,013.797 179,630.07 250,865.90 71,235.84 50,131.45 70,012.078 186,401.57 263,409.20 77,007.63 43,351.05 61,260.569 193,511.65 276,579.66 83,068.01 37,503.85 53,602.99

10 200,977.23 290,408.64 89,431.41 32,458.94 46,902.62TOTAL 1,994,121.82 2,354,581.48 360,459.66 962,797.81 919,681.68

NPV @ 20% (35,930.11)IRR 15.94%BCR 0.96

Schedule 4

REPAIRS AND MAINTENANCE

Item Basis Rate (%) Total CostPer Year (540 Hrs.)

Rice Mill/Engine 81,000.00 20 16,200.00 Service Vehicle 65,000.00 20 13,000.00 Building 100,000.00 15.0 15,000.00 Total 44,200.00