Mid-term Exam for Ad.Econ. 38 BSA Balintocatok

BSA balintocatok

Examination

1. The amount of initial capital for quail production would be Php300,000.00, loan from the bank at 18% per annum payable within 5 years with equal installment basis.

Prepare the work plan and budget, financial statement and analysis of the quail project for five years base from the assumption below.

Quail Production                                                              

Assumptions:                                                                    

  Cost of pullet                                P                       38.00   /head

  Cost of Feeds for all                      P                       22.50   /kg

  Cost of Supplement & Medicine     P                     130.00   /2000 layers/month

  Cost of Electricity                         P                         2.50 /1000 birds/day

  Cost of water                                P                       0.001   /bird/day

  Cost of Transportation                   2.00%                            of feed cost

  Cost of labor                                                       3,000.00 /head/month

  Price of Culled                              P                       15.00   /heads

  Price of egg                                  P                         1.10 /pc

  Price of Manure                            P                     150.00   /sack

  Price of sack                                P                         8.00 /pc

  Manure harvested                                                   10.00   kg/1000 hds/day

  Mortality Rate                               5%                                /growing category

  Laying Efficiency                          85%                             

  Feed consumptions                                                79.00   sacks/1000 hds/cycle

  Project Capacity                           1500                              heads/year

  Contingency Cost                         1.5%                            

  Opportunity Cost of Capital            12.0%                           

  Life Span of Assets                                                 10.00   Years

  Product Spoilage/Damage             5.0%                            

  Hurdle Rate                                  18%                              /annum

  Increase of Cost                           5.0%                             /year

Note: you can make other assumptions in addition to the assumptions stated above.

2. The amount of initial capital for Sweet Corn Ear Production would be Php300,000.00, loan from the bank at 18% per annum payable within 5 years with equal installment basis.

Prepare the work plan and budget, financial statement and analysis of the quail project for five years base from the assumption below:

Sweet Corn Ear Production                                                  

General Assumptions                                                           

   1. Labor Cost                                       Php          150.00     /MD

   2. Cost of Labor & Animal Labor             Php          300.00     /AMD

   3. Tractor operation:                                                            

       a. Disc Plowing                                Php       3,500.00     /ha

       b. Disc Harrow                                  Php       3,000.00     /ha

   4. Hauling/transportation Cost                5%                           of net sales

   5. Cost of Chemicals:                                                          

       a. Insecticide                                    Php       1,800.00     /Litter

       b. Herbicide                                      Php       1,900.00     /Litter

   6. Cost of Fertilizer:                                                             

       a. Urea                                            Php       1,300.00     /bag

       b. Ammonium Phosphate                  Php       1,500.00     /bag

       c. Complete                                     Php       1,600.00     /bag

   7. Cost of Seeds                                   Php       1,500.00     /kg

   8. Sacks                                              Php             8.00      /pc

   9. Number of Plants                                               60,000     /ha

   10. Mortality Rate                                 10%                        

   11. Spoilage Rate                                 5%                          

   12. Selling Price of Green Corn              Php             2.50      /pc

   13. Number of Croppings                                                2     /year

   14. Crop Insurance                                                  1,500      ./Hectare

   15. Cost of Capital                                12%                         /annum

   16. Maturity of Loan                              4                              Years

   17. Service Fee                                    3%                          

   18. Contingency Cost                            5%                          

   19. Increase rate of Cost                       5%                           /year

Note: you can make other assumptions in addition to the assumptions stated above.

3. Discuss the flow of preparing market and technical study? Why socio-economic impact of the project is important?

4. Discuss the most common ways in identifying business opportunities. Enumerate and discuss the details on how you will screen the business project opportunities?