13C05 Economic Study
13C05 Economic Study
13C05 Economic Study
ECONOMI
C STUDY
INTRODUCTION
The economic study of GeoLith Incorporated determines the economic
feasibility of the project and to ensure that the plant design is operating
under conditions that yield a profit. Qualitative indicators such as net profit,
Geopolymerization of Ceramic Waste, Coal Fly Ash, and Spent
Economic
Bleaching Earth for the Production of Sodium Aluminosilicate 1
Monoliths Study
R.C. Macasil, A.P.P. Redublo, A.C.Santos, C.I.V.Torres
PAMANTASAN NG LUNGSOD NG MAYNILA
University of the City of Manila
College of Engineering and Technology
Department of Chemical Engineering
rate of return, payout period, and breakeven point were determined and
evaluated. Moreover, the details of the significance of projection indices such
as the purchasing power of peso and compensation index for the cost
estimation of the project were included.
Specific Objectives
To obtain a bank loan approval to justify the source of funding for the
company.
To provide a financial statement of the company for the year 2024 that
includes the income statement, balance sheet, cashflow statement,
and discounted cashflow, to determine the ability of the business to
generate cash, and the capability to pay back its debts.
analysis are also presented which consists of the net profit, rate of return,
payout period, and break-even point.
Company Registration
A. Company Name Application
The company name should be reserved and registered in
Securities and Exchange Commission (SEC) Main Office located at
Secretariat Building, PICC Complex, Roxas Boulevard. The company
name is to be verified first before submitting other documents. The
requirements in applying for the company name are Cover Page,
Articles of Incorporation, Treasurer’s Affidavit, and By-laws of the
company. These documents shall be submitted notarized to the SEC
Office.
C. BIR Registration
The BIR registration shall be applied at the Regional District
Office (RDO) of the area where the manufacturing plant is located for
the application of TIN and payment for the national internal revenue
taxes (Income tax, VAT, and withholding taxes.
Geopolymerization of Ceramic Waste, Coal Fly Ash, and Spent
Economic
Bleaching Earth for the Production of Sodium Aluminosilicate 6
Monoliths Study
R.C. Macasil, A.P.P. Redublo, A.C.Santos, C.I.V.Torres
PAMANTASAN NG LUNGSOD NG MAYNILA
University of the City of Manila
College of Engineering and Technology
Department of Chemical Engineering
D. Patent
The application for a grant of Philippine Patent (for Invention)
was filed with the Bureau of Patents (BOP) of the Intellectual Property
Office (IPO) through the Receiving Section/Counter of the
Administrative, Financial and Human Resource Development Services
Bureau (AFHRDSB) located at the ground floor of the IPO Building.
COMPANY PERSONNEL
I. EXECUTIVE DEPARTMENT
The Executive Department controls and monitors the company's
operation such as overall administration, planning, supervision and fiscal
functions. It is composed of the Chief Executive Officer (CEO) and executive
secretary. The CEO handles and supervises the other four departments while
the executive secretary manages the CEO’s appointment and keeps all the
records of the company.
Plant Manager
Overseeing the production process and drawing up a production
schedule ensuring that the production is cost effective
Making sure that the product is produced on time and is sought
after quality
Working out the human and material resources needed for the
production department
Monitoring the production processes and adjusting schedules as
needed
Being responsible for the selection and maintenance of equipment
Works out and implement a standard operating procedure to meet
the production target
Ensuring that health and safety guidelines are followed
Implements and enforce quality control and tracking programs to
meet quality objectives
3. Maintenance Engineer
There is one maintenance engineer in the company. The
responsibilities of the maintenance engineer are:
Provide technical assistance and maintenance of the
company equipment
Analyze equipment malfunctions and failures and accordingly
develop corrective actions
Develop improvements to enhance equipment reliability and
scalability
Monitor equipment performance and suggest improvements
4. Safety Engineers
There is one safety engineers in the company, one of them are
present in each shift. The responsibilities of the safety engineer are:
Identify and evaluate hazardous conditions and practices
Perform an internal safety audit twice annually
Geopolymerization of Ceramic Waste, Coal Fly Ash, and Spent
Economic
Bleaching Earth for the Production of Sodium Aluminosilicate 12
Monoliths Study
R.C. Macasil, A.P.P. Redublo, A.C.Santos, C.I.V.Torres
PAMANTASAN NG LUNGSOD NG MAYNILA
University of the City of Manila
College of Engineering and Technology
Department of Chemical Engineering
6. Production Operators
There are six production in the company in which two personnel are
present in every shift. His responsibilities include:
Responsible for measuring, grading, feeding the raw
materials in each equipment
Operates the production line equipment
Report equipment faults to the in-line supervisors
Monitors the production process and carry out basic testing
and quality checks
7. Warehouse Personnel
There are three warehouse personnel in which one personnel is
present in every shift. His responsibilities include:
Checking the condition of the raw material, chemicals, and
product before coming in and out of the warehouse
Prepares orders by processing requests and supply orders;
pulling materials; packing boxes; placing orders in delivery
area
2. Accountant
There is one accountant in the company. His responsibilities include:
Analyze the present financial information and prepare an accurate and
timely financial reports and statements by applying the principles of
accounting
Compiles and analyzes the financial information of the company and
the its historical data
Responsible for preparing the weekly cash position reports and collects
and issues official receipts
3. Auditor
3. Company Nurse
There is one nurse in the company. His responsibilities include:
Geopolymerization of Ceramic Waste, Coal Fly Ash, and Spent
Economic
Bleaching Earth for the Production of Sodium Aluminosilicate 18
Monoliths Study
R.C. Macasil, A.P.P. Redublo, A.C.Santos, C.I.V.Torres
PAMANTASAN NG LUNGSOD NG MAYNILA
University of the City of Manila
College of Engineering and Technology
Department of Chemical Engineering
4. Company Driver
There is one drivers in the company. His responsibilities include:
In-charge of the company vehicle during the transportation of raw
materials and distribution of product
Load, unload, prepare, inspect and operate delivery vehicle
Assisting all injured employees to the nearest hospital
5. Security Staf
There are three security staff in the company in which one of them are
present every shift. Their responsibilities include:
Securing premises and personnel by patrolling property; monitoring
surveillance equipment; inspecting buildings, equipment, and
access points; permitting entry
Maintaining environment by monitoring and setting building
controls
Preventing losses and damage by reporting irregularities; informing
violators of policy and procedures; restraining trespassers
Completing reports by recording observations, information,
occurrences, and surveillance activities; obtaining signatures
6. Utility Personnel
There are three utility personnel in the company in which one of them
are present every shift. Their responsibilities include:
Geopolymerization of Ceramic Waste, Coal Fly Ash, and Spent
Economic
Bleaching Earth for the Production of Sodium Aluminosilicate 19
Monoliths Study
R.C. Macasil, A.P.P. Redublo, A.C.Santos, C.I.V.Torres
PAMANTASAN NG LUNGSOD NG MAYNILA
University of the City of Manila
College of Engineering and Technology
Department of Chemical Engineering
2. Purchasing Officer
There is one purchasing officers in the company, the responsibilities
are:
Processes purchasing transactions for services, equipment,
stationery and other goods
Performs duties such as identifying procurement needs, reviewing
purchase requisitions, awarding supplier tenders, and supervising
performance of contractors
4. Marketing Strategists
There are two marketing strategists in the company, the
responsibilities are:
Creating and developing effective promotional strategies that
brings higher market sales.
Helping the sales manager to develop advertising campaigns and
assist him on daily advertising activities
Elaborating marketing strategies and participating in the
implementation process
5. Sales Representatives
There are two sales representatives in the company, the
responsibilities are:
Establishes, develops and maintains business relationships with
current customers and prospect customers in the assigned market
segment
Develops interesting way to sell the product through
communicating with the clients
PRESEN
T
DEPARTMEN EXPERIEN MONTHL
POSITION QUALIFICATIONS
T CE Y
SALARY
(Php)
Chief Master of Business
5 to 10
Executive Administration or 80,000
EXECUTIVE years
Officer equivalent
DEPARTMEN
4-year Business
T Executive 1 to 2
Administration 20,000
Secretary years
degree holder
PRODUCTIO Licensed Chemical/ 3 to 5
Plant Manager 40,000
N Mechanical Engineer years
DEPARTMEN Production Licensed Chemical/ 1 to 2
28,000
T Supervisor Mechanical Engineer years
Control Room Licensed Chemical/ 1 to 2
22,500
Engineer Mechanical Engineer years
Maintenance Licensed Mechanical 1 to 2
22,500
Engineer Engineer years
Pollution Licensed Chemical 1 to 2 19,500
Control Officer Engineer years
EMPLOYEE BENEFITS
Under the Republic Act No. 6715 or the Philippine Labor Code, the
seven basic employee benefits for a legal worker in the Philippines are
identified. GeoLith Inc., are entitled to the following benefits to be given to
the employee:
1. Social Security System (SSS) Contributions
The social security system benefits aim to provide protection for the
SSS member against socially recognized hazard conditions, such as sickness,
disability, maternity, old age and death, or other such contingencies that
resulted in loss of income or results to a financial burden.
The employee and the company will contribute for the social security
benefits of the said employees in accordance to the given contributions table
by the Philippine Social Security System.
2. Healthcare Benefits through National Health Insurance Program
(PhilHealth)
According to the Republic Act 7875 or the Medicare Program
administered by the Philippine Health Insurance Corporation, the employee
and his employers shall contribute for the medical insurance of the said
employee. Effective January 2018, the monthly premium contributions shall
be at the rate of 2.75% computed straight based on the monthly basic salary,
with a salary floor of P10,000 and a ceiling of P40,000, to be equally shared
by the employees and employer.
Similar to the SSS contribution, the PhilHealth contribution will be
deducted to the monthly salary of the employee and the employer’s
contribution will be financed by the allocated labor budget.
5. Overtime Pay
According the Labor Code Article 87, work may be performed beyond
eight (8) hours a day provided that the employee is paid for the overtime
work, an additional compensation equivalent to his regular wage plus at least
twenty-five percent (25%) of his wage. Work performed beyond eight hours
on a holiday or rest day shall be paid an additional compensation equivalent
to the rate of the first eight hours on a holiday or rest day plus at least thirty
percent (30%) of his wage.
Executive Department
Chief Executive Officer 1st/8:00 AM – 5:00 PM
Executive Secretary 1st/8:00 AM – 5:00 PM
Production Department
Plant Manager 1st/8:00 AM – 5:00 PM
Production Supervisor 1 1st/6:00 AM- 2:00 PM
Production Supervisor 2 2nd/2:00 PM – 10:00 PM
Production Supervisor 3 3rd/10:00 PM – 6:00 AM
Control Room Engineer 1 1st/6:00 AM- 2:00 PM
Control Room Engineer 2 2nd/2:00 PM – 10:00 PM
Control Room Engineer 3 3rd/10:00 PM – 6:00 AM
Maintenance Engineer 1st/6:00 AM- 2:00 PM
Pollution Control Officer 1st/8:00 AM – 5:00 PM
Safety Engineer 1st/6:00 AM- 2:00 PM
Process Operators 1, 2 1st/6:00 AM- 2:00 PM
Process Operators 3, 4 2nd/2:00 PM – 10:00 PM
Process Operators 5, 6 3rd/10:00 PM – 6:00 AM
Warehouse Personnel 1 1st/6:00 AM- 2:00 PM
Warehouse Personnel 2 2nd/2:00 PM – 10:00 PM
Warehouse Personnel 3 3rd/10:00 PM – 6:00 AM
Quality Assurance Department
Quality Assurance Head 1st/8:00 AM – 5:00 PM
Laboratory Analyst 1 1st/6:00 AM- 2:00 PM
Laboratory Analyst 2 2nd/2:00 PM – 10:00 PM
Laboratory Analyst 3 3rd/10:00 PM – 6:00 AM
Research and Development Department
R&D Head 1st/8:00 AM – 5:00 PM
R&D Staff 1st/8:00 AM – 5:00 PM
Finance Department
Finance Manager 1st/8:00 AM – 5:00 PM
Accountant 1st/8:00 AM – 5:00 PM
Auditor 1st/8:00 AM – 5:00 PM
Payroll Clerk 1st/8:00 AM – 5:00 PM
Human Resources Department
Human Resources Manager 1st/8:00 AM – 5:00 PM
Human Resources 1st/8:00 AM – 5:00 PM
Representative
Company Nurse 1st/8:00 AM – 5:00 PM
Security Staff 1 1st/6:00 AM- 2:00 PM
Security Staff 2 2nd/2:00 PM – 10:00 PM
Security Staff 3 3rd/10:00 PM – 6:00 AM
Company Driver 1st/8:00 AM – 5:00 PM
Utility Personnel 1 1st/6:00 AM- 2:00 PM
Utility Personnel 2 2nd/2:00 PM – 10:00 PM
Geopolymerization of Ceramic Waste, Coal Fly Ash, and Spent Bleaching Earth for the Production of
Sodium Aluminosilicate Monoliths Economic Study 29
R.C. Macasil, A.P.P. Redublo, A.C.Santos, C.I.V.Torres
PAMANTASAN NG LUNGSOD NG MAYNILA
University of the City of Manila
College of Engineering and Technology
Department of Chemical Engineering
The present salary is the amount that an employee must receive in return of his services to the company. On
the other hand, the net pay is the amount of money received by the employee after the deductions such as SSS,
PAG-IBIG, and Phil Health Contributions are removed. In Table 13.4, the income tax was not deducted because the
data on the marital status of the employee must be determined since it has a relationship with the income tax to be
deducted.
Geopolymerization of Ceramic Waste, Coal Fly Ash, and Spent Bleaching Earth for the Production of
Sodium Aluminosilicate Monoliths Economic Study 30
R.C. Macasil, A.P.P. Redublo, A.C.Santos, C.I.V.Torres
PAMANTASAN NG LUNGSOD NG MAYNILA
University of the City of Manila
College of Engineering and Technology
Department of Chemical Engineering
Geopolymerization of Coal Fly Ash, Ceramic Tile Wastes and Spent Econo
Bleaching Earth for the Production of Sodium Aluminoslicate
Monolith mic 31
R.C. Macasil, A.P.P. Redublo, A.C.Santos, C.I.V.Torres Study
PAMANTASAN NG LUNGSOD NG MAYNILA
University of the City of Manila
College of Engineering and Technology
Department of Chemical Engineering
3. Currency Considerations
Fluctuating exchange rates affect purchasing power in relation to other
currencies. As Philippine Peso devalues against another country, goods in
other country will be higher in Philippine peso. This fact in itself does not
necessarily affect purchasing power for domestic purchases, but businesses
that rely on suppliers in other country can experience dramatic price
increases for imported goods. These businesses may pass their higher costs
Geopolymerization of Coal Fly Ash, Ceramic Tile Wastes and Spent Econo
Bleaching Earth for the Production of Sodium Aluminoslicate
Monolith mic 32
R.C. Macasil, A.P.P. Redublo, A.C.Santos, C.I.V.Torres Study
PAMANTASAN NG LUNGSOD NG MAYNILA
University of the City of Manila
College of Engineering and Technology
Department of Chemical Engineering
Geopolymerization of Coal Fly Ash, Ceramic Tile Wastes and Spent Econo
Bleaching Earth for the Production of Sodium Aluminoslicate
Monolith mic 33
R.C. Macasil, A.P.P. Redublo, A.C.Santos, C.I.V.Torres Study
PAMANTASAN NG LUNGSOD NG MAYNILA
University of the City of Manila
College of Engineering and Technology
Department of Chemical Engineering
Geopolymerization of Coal Fly Ash, Ceramic Tile Wastes and Spent Econo
Bleaching Earth for the Production of Sodium Aluminoslicate
Monolith mic 34
R.C. Macasil, A.P.P. Redublo, A.C.Santos, C.I.V.Torres Study
PAMANTASAN NG LUNGSOD NG MAYNILA
University of the City of Manila
College of Engineering and Technology
Department of Chemical Engineering
average decrement rate, the more auspicious the projection method is due to
the fact that a minimal Peso value decrease indicates a strong Peso value
over the period. With a high percentage of the average decrement rate, it
means that the Peso value is drastically weakening due to the certain
economic factors including the inflation rate, consumer price index (CPI), etc.
PROJECTIONS OF PPP
ARITHMETIC
STATISTICAL MODELS
MODELS
YEAR Straight Geometr Straigh Geometric Parabolic
Line ic Curve t Line Curve Curve
Method Method Method Method Method
2018 0.67 0.68 0.67 0.68 0.70
2019 0.66 0.68 0.66 0.66 0.72
2020 0.64 0.65 0.64 0.65 0.74
2021 0.63 0.63 0.63 0.64 0.78
2022 0.61 0.62 0.62 0.63 0.82
2023 0.59 0.61 0.60 0.60 0.85
2024 0.58 59 0.59 0.58 0.87
DETERMINANTS / INDICATORS
Standard
0.03 0.02 0.03 0.03 0.05
Deviation
Pearson
0.97 0.98 0.97 0.96 -0.93
Coefficient
z-value -1.50 -1.47 -1.50 -1.92 1.60
p-value 0.0004 0.0003 0.0001 0.0007 -
Annual
2.50 2.16 2.32 2.45 -3.35
Decrement Rate
0.8
0.75
0.7
0.65
0.6
0.55
0.5
0.45
2019 2020 2021 2022 2023 2024
Geopolymerization of Coal Fly Ash, Ceramic Tile Wastes and Spent Econo
Bleaching Earth for the Production of Sodium Aluminoslicate
Monolith mic 36
R.C. Macasil, A.P.P. Redublo, A.C.Santos, C.I.V.Torres Study
PAMANTASAN NG LUNGSOD NG MAYNILA
University of the City of Manila
College of Engineering and Technology
Department of Chemical Engineering
It has the lowest standard deviation of 0.02, implying that the data
are relatively close to each other. As for the z-value, arithmetic geometric
curve has a value of -1.47 which is the closest to zero. The closer it is to
zero, the better, for it means that the data is relatively close to the mean.
Furthermore, it has the lower and a realistic annual decrement rate of
2.16%.
Since, this Arithmetic Geometric Curve method is the most
favorable, it is used as the value for the purchasing power of peso by
the year 2024 which is 0.59
Geopolymerization of Coal Fly Ash, Ceramic Tile Wastes and Spent Econo
Bleaching Earth for the Production of Sodium Aluminoslicate
Monolith mic 37
R.C. Macasil, A.P.P. Redublo, A.C.Santos, C.I.V.Torres Study
PAMANTASAN NG LUNGSOD NG MAYNILA
University of the City of Manila
College of Engineering and Technology
Department of Chemical Engineering
INDICES OF COMPENSATION
The index of compensation is commonly used to project the
compensation of employees that change over time. It is a quarterly report of
the cost of compensation that is release in the final month of the quarter.
Index of compensation also presents the changes in wages, bonuses and
benefits from the previous quarter. With the exception of the federal
government employees, all the non-farm industries are covered.
Geopolymerization of Coal Fly Ash, Ceramic Tile Wastes and Spent Econo
Bleaching Earth for the Production of Sodium Aluminoslicate
Monolith mic 38
R.C. Macasil, A.P.P. Redublo, A.C.Santos, C.I.V.Torres Study
PAMANTASAN NG LUNGSOD NG MAYNILA
University of the City of Manila
College of Engineering and Technology
Department of Chemical Engineering
Geopolymerization of Coal Fly Ash, Ceramic Tile Wastes and Spent Econo
Bleaching Earth for the Production of Sodium Aluminoslicate
Monolith mic 40
R.C. Macasil, A.P.P. Redublo, A.C.Santos, C.I.V.Torres Study
PAMANTASAN NG LUNGSOD NG MAYNILA
University of the City of Manila
College of Engineering and Technology
Department of Chemical Engineering
the data points tend to be close to the mean value, while a high standard
deviation indicates that the data points are spread out over a wider range of
values. Moreover, the absolute value of z represents the distance between
the raw score and the population mean in units of the standard deviation. Z is
negative when the raw score is below the mean, positive when above. The
method of projection which has lowest value of standard deviation and z-
value with a value near to zero is the most acceptable and reliable method of
projection. Additionally, the percentage in the average growth rates method
represents the annual growth rate or the trend of the index of compensation.
The higher the percentage of the average growth rate, the more auspicious
the projection method is.
7,000.00
6,000.00
5,000.00
Value
4,000.00
3,000.00
2,000.00
1,000.00
0.00
2017 2018 2019 2020 2021 2022 2023 2024 2025
Year
Geopolymerization of Coal Fly Ash, Ceramic Tile Wastes and Spent Econo
Bleaching Earth for the Production of Sodium Aluminoslicate
Monolith mic 41
R.C. Macasil, A.P.P. Redublo, A.C.Santos, C.I.V.Torres Study
PAMANTASAN NG LUNGSOD NG MAYNILA
University of the City of Manila
College of Engineering and Technology
Department of Chemical Engineering
Geopolymerization of Coal Fly Ash, Ceramic Tile Wastes and Spent Econo
Bleaching Earth for the Production of Sodium Aluminoslicate
Monolith mic 42
R.C. Macasil, A.P.P. Redublo, A.C.Santos, C.I.V.Torres Study
PAMANTASAN NG LUNGSOD NG MAYNILA
University of the City of Manila
College of Engineering and Technology
Department of Chemical Engineering
among the three remaining methods it has the lowest annual average growth
value and also the lowest correlation with a value of 0.8436 which signifies
among the method the index of compensation it produced has the least
correlation to the historical index of compensation that is why it is not chosen
as the method to project the index of compensation. Next is the Statistical
Straight line method among the three remaining method it has the lowest
growth rate so despite of it having the lowest standard deviation and z-score
it is still not chosen as the method to be used. The two best projection among
the 5 methods are Statistical Geometric Curve and Arithmetic Geometric
Curve but the researchers choose Arithmetic Geometric Curve as the best
method to project the index of compensation for the reason it has a lower
standard deviation and z-score which means the value it projected is tightly
clustered and more accurate than the projected value of Statistical Geometric
Curve. Correlation and p-value was not use to compare the two method
because the two method has the same value. From the projection of the
chosen method, the index of compensation for the year 2024 is expected to
be 2,239.61.
Geopolymerization of Coal Fly Ash, Ceramic Tile Wastes and Spent Econo
Bleaching Earth for the Production of Sodium Aluminoslicate
Monolith mic 43
R.C. Macasil, A.P.P. Redublo, A.C.Santos, C.I.V.Torres Study
PAMANTASAN NG LUNGSOD NG MAYNILA
University of the City of Manila
College of Engineering and Technology
Department of Chemical Engineering
PROCUREMENT
To put GeoLith Inc. into operation, a large amount of money is needed
to purchase the necessary equipment, auxiliaries, piping elements, buildings,
and land. The cost estimation of these materials are presented below.
A. COST OF EQUIPMENT
The equipment was to be procured in the year 2022 and the
corresponding projected estimates were calculated using the following
formula below. It is based from the purchasing power of peso for the base
year of 2019 and for the projected year of 2022.
PPP2019
Equipment Cost 2022 =Equipment Cost 2019 ×
PPP2022
Table 13.12 Summary of Costs and Projection Costs of Equipment by GeoLith Inc.
Geopolymerization of Coal Fly Ash, Ceramic Tile Wastes and Spent Econo
Bleaching Earth for the Production of Sodium Aluminoslicate
Monolith mic 44
R.C. Macasil, A.P.P. Redublo, A.C.Santos, C.I.V.Torres Study
PAMANTASAN NG LUNGSOD NG MAYNILA
University of the City of Manila
College of Engineering and Technology
Department of Chemical Engineering
Double Roll
3 Multico Prime Power Inc. 400,000.00 438,709.68
Crusher
BETA Equipment Sales
4 Belt Conveyor 82,000.00 89,935.48
Corporation
Retsch – ITS Science
5 Ball Mill 400,000.00 438,709.68
(Phils.) Inc.
Pneumatic
6 AMANO Philippines 200,000.00 219,354.84
Conveyor 2
Isopropanol Mechatrends Contractors
7 110,000.00 120,645.16
Storage Tank Corporation
Batch Leaching Ace Packaging Co. (Phils) 1,866,634.0
8 2,047,276.00
Tank Inc. 0
Agitated
9 Sinofil Philippines, Inc 500,000.00 548,387.10
Nutsche Filter
1 Pneumatic
AMANO Philippines 200,000.00 219,354.84
0 Conveyor 3
1 Kaeser Kompressoren
Rotary Dryer 257,000.00 281,870.97
1 Philippines
1 Pneumatic
AMANO Philippines 200,000.00 219,354.84
2 Conveyor 4
1 VESMACH Equipment and
Ribbon Blender 520,000.00 570,322.58
3 Machines
1 Pneumatic
AMANO Philippines 200,000.00 219,354.84
4 Conveyor 5
1 Sodium Silicate Mechatrends Contractors
110,000.00 120,645.16
5 Storage Tank Corporation
1 Water Storage JMCC Industries
150,000.00 164,516.13
6 Tank Incorporated
Sodium
1
Hydroxide JGC Philippines, Inc 105,000.00 115,161.29
7
Dilution Tank
Hydrogen
1
Peroxide Weida Philippines, Inc. 95,000.00 104,193.55
8
Dilution Tank
1 Batch Stirred Ace Packaging Co. (Phils.) 1,866,634.0
2,047,276.00
9 Tank Reactor Inc. 0
Double Belt
2 BETA Equipment Sales
Laminating 740,000.00 811,612.90
0 Corporation
Conveyor
2 Steam Curing Shivang Furnaces and 1,500,000.0
1,645,161.29
1 Chamber Ovens Industries 0
2 Steam Curing
WYMA Solutions Inc 390,000.00 427,741.94
2 Tunnel
Geopolymerization of Coal Fly Ash, Ceramic Tile Wastes and Spent Econo
Bleaching Earth for the Production of Sodium Aluminoslicate
Monolith mic 45
R.C. Macasil, A.P.P. Redublo, A.C.Santos, C.I.V.Torres Study
PAMANTASAN NG LUNGSOD NG MAYNILA
University of the City of Manila
College of Engineering and Technology
Department of Chemical Engineering
Table 13.x Summary of Cost and Projected Cost of Auxiliaries and Wastewater
Equipment
Projected
Cost per
Cost per
Equipment
Equipment Manufacturer Equipment
(2019),
(2022),
PhP
PhP
WASTEWATER TREATMENT EQUIPMENT
Flow
1 Equalization 62,500.00 68,548.39
Basin
Neutralizatio
2 n Contact 88,250.00 96,790.32
Energreen Technology, Inc.
Basin
Sedimentatio
3 44,216.00 48,494.97
n Tank
Aeration
4 54,458.00 59,728.13
Basin
Trickling
5 Brentwood Industries Inc. 601,842.21 660,085.00
Filter
6 Final Clarifier Energreen Technology, Inc. 44,216.00 48,494.97
Total Wastewater Treatment Equipment
895,482.21 982,141.78
Cost
MISCELLANEOUS EQUIPMENT
Cargo Truck Isuzu Philippines 2,821,880.6 3,094,965.8
1
(4 units) Corporation 0 19
Minor Raw
Mitsubishi Motors Philippine 574,709.677
2 Materials 524,000.00
Corp. 4
Truck (1 unit)
Forklift (2 701,843.475
3 Schindler Philippines 639,916.11
units) 5
Total Miscellaneous Equipment Cost 3,985,796. 4,371,518.
Geopolymerization of Coal Fly Ash, Ceramic Tile Wastes and Spent Econo
Bleaching Earth for the Production of Sodium Aluminoslicate
Monolith mic 46
R.C. Macasil, A.P.P. Redublo, A.C.Santos, C.I.V.Torres Study
PAMANTASAN NG LUNGSOD NG MAYNILA
University of the City of Manila
College of Engineering and Technology
Department of Chemical Engineering
71 972
Table 6.XX Summary of Cost and Projected Cost for Piping System
Projecte
Leng Total
Cost (per d Total
Piping Pipe/Auxillia th Cost
m, per Cost
System ries (m) / (2018)
piece) (2022)
Piece Php
Php
PROCESS PIPING
3 in, Sch 40 17.85 278.5 4,971.23 5,452.31
PP No.1 standard
(Isopropanol 3 1,232.75 3,698.25 4,056.15
elbow
Storage Tank 14,231.9 15,609.2
to Leaching gate valve 1 14,231.93
3 1
Tank) centrifugal 30,215.5 33,139.5
1 30,215.50
pump 0 8
3.50 in, Sch
10.21 312.25 3,188.07 3,496.60
40
PP No. 2
standard
(Leaching 2 1,757.20 3,514.40 3,854.50
elbow
Tank to
16,231.9 17,802.7
Agitated gate valve 1 16,231.90
0 3
Nustche Filter)
centrifugal 34,904.5 38,282.3
1 34,904.50
pump 0 5
Geopolymerization of Coal Fly Ash, Ceramic Tile Wastes and Spent Econo
Bleaching Earth for the Production of Sodium Aluminoslicate
Monolith mic 47
R.C. Macasil, A.P.P. Redublo, A.C.Santos, C.I.V.Torres Study
PAMANTASAN NG LUNGSOD NG MAYNILA
University of the City of Manila
College of Engineering and Technology
Department of Chemical Engineering
12,400.7 13,600.8
gate valve 1 12,400.75
5 2
centrifugal 20,999.5 23,031.7
to Main 1 20,999.53
pump 3 4
Header 1)
standard tee 1 4,575.20 4,575.20 5,017.96
4 in, Sch 40 11.08 390.54 4,327.18 4,745.94
WP No.2 standard
(Water 2 3,050.75 6,101.50 6,691.97
elbow
Storage Tank 12,400.7 13,600.8
to NaOH gate valve 1 12,400.75
5 2
Dilution Tank) centrifugal 20,999.5 23,031.7
1 20,999.53
pump 3 4
WP No.3 4 in, Sch 40 11.08 390.54 4,327.18 4,745.94
(Water standard
2 3,050.75 6,101.50 6,691.97
Storage Tank elbow
to Hydrogen gate valve 12,400.75 - -
Peroxide centrifugal 20,999.5 23,031.7
Dilution Tank) 1 20,999.53
pump 3 4
4 in, Sch 40 20.81 390.54 8,127.14 8,913.63
WP No.3 standard 10,037.9
(Water 3 3,050.75 9,152.25
elbow 5
Transfer to 12,400.7 13,600.8
Electric Steam gate valve 1 12,400.75
5 2
Boiler) centrifugal 20,999.5 23,031.7
1 20,999.53
pump 3 4
178,699. 195,992.
Total Water Piping Cost
43 93
STEAM PIPING
SP No.1 1.5 in, Sch 40 29.21 110.5 3,227.71 3,540.06
(Electric standard
Steam Boiler 2 999.75 1,999.50 2,193.00
elbow
to Batch 10,572.7 11,595.9
Stirred globe valve 1 10,572.75
5 2
Extraction
Tank) standard tee 1 2,500.95 2,500.95 2,742.98
18,410.2 20,191.9
3.5 in, Sch 40 58.96 312.25
SP No.2 6 0
(Electric standard
1 2,045.50 2,045.50 2,243.45
Steam Boiler elbow
to Rotary 18,975.2 20,811.5
globe valve 1 18,975.25
Dryer) 5 6
standard tee 1 4,575.20 4,575.20 5,017.96
Geopolymerization of Coal Fly Ash, Ceramic Tile Wastes and Spent Econo
Bleaching Earth for the Production of Sodium Aluminoslicate
Monolith mic 49
R.C. Macasil, A.P.P. Redublo, A.C.Santos, C.I.V.Torres Study
PAMANTASAN NG LUNGSOD NG MAYNILA
University of the City of Manila
College of Engineering and Technology
Department of Chemical Engineering
26,737.9 29,325.5
3.5 in, Sch 40 85.63 312.25
SP No.3 7 1
(Electric standard
1 2,045.50 2,045.50 2,243.45
Steam Boiler elbow
to Steam 18,975.2 20,811.5
globe valve 1 18,975.25
Curing Tunnel) 5 6
standard tee 1 4,575.20 4,575.20 5,017.96
19,077.3 20,923.5
SP No.4 2 in, Sch 40 80.58 236.75
2 1
(Electric standard 13,399.5 14,696.2
Steam Boiler 1 1299.75
elbow 0 3
to Steam 13,399.5 14,696.2
Curing globe valve 1 13,399.50
0 3
Chamber)
standard tee 1 2,595.20 2,595.20 2,846.35
163,112. 178,897.
Total Steam Piping Cost
55 63
WASTEWATER TREATMENT PIPING
15,842.0 17,375.2
WWP No.1 5 in, Sch 40 38.06 416.24
9 0
(Flow
sharp elbow 1 3,876.81 3,876.81 4,251.99
Equalization
Basin to 16,282.0 17,857.7
gate valve 1 16,282.09
Neutralization 9 8
Contact Basin) centrifugal 38,480.1 42,204.0
1 38,480.19
pump 9 8
WWP No.2 5 in, Sch 40 21.32 416.24 8,874.24 9,733.03
(Neutralizatio standard 11,630.4 12,755.9
n Contact 3 3,876.81
elbow 3 6
Basin to 16,282.0 17,857.7
Primary gate valve 1 16,282.09
9 8
Sedimentation centrifugal 38,480.1 42,204.0
Tank) 1 38,480.19
pump 9 8
15,842.0 17,375.2
5 in, Sch 40 38.06 416.24
WWP No.3 9 0
(Primary standard
2 3,876.81 7,753.62 8,503.97
Sedimentatiao elbow
n Tank to 16,282.0 17,857.7
gate valve 1 16,282.09
Aeration 9 8
Basin) centrifugal 38,480.1 42,204.0
1 38,480.19
pump 9 8
WWP No.4 5 in, Sch 40 18.05 416.24 7,513.13 8,240.21
(Aeration standard 2 3,876.81 7,753.62 8,503.97
Basin to elbow
Geopolymerization of Coal Fly Ash, Ceramic Tile Wastes and Spent Econo
Bleaching Earth for the Production of Sodium Aluminoslicate
Monolith mic 50
R.C. Macasil, A.P.P. Redublo, A.C.Santos, C.I.V.Torres Study
PAMANTASAN NG LUNGSOD NG MAYNILA
University of the City of Manila
College of Engineering and Technology
Department of Chemical Engineering
16,282.0 17,857.7
gate valve 1 16,282.09
9 8
Trickling Filter) centrifugal 38,480.1 42,204.0
1 38,480.19
pump 9 8
15,842.0 17,375.2
5 in, Sch 40 38.06 416.24
9 0
WWP No.5 standard 11,630.4 12,755.9
3 3,876.81
(Trickling Filter elbow 3 6
to Secondary 451,339. 495,017.
gate valve 27.72 16,282.09
Clarifier) 53 55
centrifugal 38,480.1 42,204.0
1 38,480.19
pump 9 8
815,427. 894,339.
Total Wastewater Piping Cost
41 74
1,892,58 2,075,73
TOTAL PIPING SYSTEM COST (Php) 0.06 2.97
The projected total piping system cost is the sum of process, water,
steam, and wastewater piping cost in 2022 which are Php 806,502.68, Php
195,992.93, Php 178,897.63, and Php 894,339.74 respectively. which is Php
2,075,732.97.
D. COST OF LAND
The land cost is the sum of all the cost associated in the purchased of
land needed for the operation of the plant. The land covers the production
area, the wastewater treatment facility, floor area of the buildings and other
service facilities. Table 6.13 summarizes the expected land area of these
facilities.
Table 6.XX Breakdown of Area Allocation
Land
Facility Dimension
Area (m2)
(m2)
Administration Building (Main Building) 15 x 12 180
Production Area 70 x 50 3,500
Wastewater Treatment Facility 25 x 20 500
QA Building 8x5 40
Raw Material Warehouse 15 x 15 225
Geopolymerization of Coal Fly Ash, Ceramic Tile Wastes and Spent Econo
Bleaching Earth for the Production of Sodium Aluminoslicate
Monolith mic 51
R.C. Macasil, A.P.P. Redublo, A.C.Santos, C.I.V.Torres Study
PAMANTASAN NG LUNGSOD NG MAYNILA
University of the City of Manila
College of Engineering and Technology
Department of Chemical Engineering
The land area required for the construction of the plant is 6,845 m 2.
Allotting additional 1,437 m2 for future expansion of the plant, the total land
area required therefore for the plant site is 8,282 m 2 and can be rounded up
to 8,500 m2.
The following land property data obtained were provided by Engr.
Benjamin Benedicto Jr., Zoning Administrator at Office of the Municipal
Planning and Development Coordinator (MPDC) in Santa Teresita City Hall.
Lot Address: Light Industrial Park at Poblacion 3, Sta. Teresita,
Batangas
Land Area Available: 15,264 sq. m
Market Value: Php 120.00 per square meter
The total cost of purchasing the land covers the land cost (excluded of
tax) and the cost of registration for the transferring of the real estate
property title which includes Documentary Stamp Tax, Transfer Tax, and
registration fee.
Geopolymerization of Coal Fly Ash, Ceramic Tile Wastes and Spent Econo
Bleaching Earth for the Production of Sodium Aluminoslicate
Monolith mic 52
R.C. Macasil, A.P.P. Redublo, A.C.Santos, C.I.V.Torres Study
PAMANTASAN NG LUNGSOD NG MAYNILA
University of the City of Manila
College of Engineering and Technology
Department of Chemical Engineering
**
0.5% of the selling price
***
0.25% of the selling price (source: http://real-estate-
guide.philsite.net/taxes.htm)
****
calculated from the projected purchasing power of peso on year 2019 and
base year 2018
E. COST OF BUILDING
The building cost is the sum total of all the cost associated in the
erection of the buildings in the manufacturing plant which includes both the
building cost and Mechanical and Electricity (M & E) cost. The building cost
covers the cost of materials used, the labor needed, and the devices used
during the construction of the building structure. The (M & E) cost covers
the cost of mechanical, electrical, fire, and plumbing services during the
construction. The table below summarizes the total expected cost based on
the building cost and M & E cost.
Table 6.XX Breakdown of Building Construction Cost
No. Are Unit Cost
Type of Dimensi Total Projected
of a Total Cost
Structure Buildin on Bldg M&E Unit Total Cost
Flo (m2 Php (2019)
g (LxW) Cost Cost Cost Php (2020)
or )
Administrat 15 x 12 25,00 10,50 35,50 6,390,000.0 6,684,923.0
3 180
ive Building m 0 0 0 0 8
Office
Quality
Class I 25,00 10,50 35,50 1,420,000.0 1,485,538.4
Control 1 8x5m 40
0 0 0 0 6
Building
Product
30 x 30 15,00 19,25 17,325,000. 18,124,615.
Storage 1 900 4,250
m 0 0 00 38
Warehouse Industri
Raw al Class
15 x 15 15,00 19,25 4,331,250.0 4,531,153.8
Material 1 225 4,250
m 0 0 0 5
Warehouse
29,466,250 30,826,230
Total Building Cost
.00 .77
Source: Langdon Seah Construction Cost Handbook (2016)
Note:
The building cost for Office-Class I [Medium/high rise offices, average
standard] is Php 15,000 to Php 27,500
The M & E cost for Office-Class I [Medium/high rise offices, average
standard])) is Php 7,900 to PhP 11,700
Geopolymerization of Coal Fly Ash, Ceramic Tile Wastes and Spent Econo
Bleaching Earth for the Production of Sodium Aluminoslicate
Monolith mic 53
R.C. Macasil, A.P.P. Redublo, A.C.Santos, C.I.V.Torres Study
PAMANTASAN NG LUNGSOD NG MAYNILA
University of the City of Manila
College of Engineering and Technology
Department of Chemical Engineering
The building cost for Industrial – Class 1 (Industrial units, shell only
(conventional single storey framed units)) is Php 10,200 to Php 14,200
The M & E cost for Industrial – Class 1 (Industrial units, shell only
(conventional single storey framed units)) is Php 3,600 to Php 4,300
The projected building cost is based from the purchasing power of peso
for the base year of 2019 and for the projected year of 2020 using the
formula:
PPP 2019
Building Cost 2020=Building Cost 2019 ×
PPP 2020
Geopolymerization of Coal Fly Ash, Ceramic Tile Wastes and Spent Econo
Bleaching Earth for the Production of Sodium Aluminoslicate
Monolith mic 54
R.C. Macasil, A.P.P. Redublo, A.C.Santos, C.I.V.Torres Study
PAMANTASAN NG LUNGSOD NG MAYNILA
University of the City of Manila
College of Engineering and Technology
Department of Chemical Engineering
Geopolymerization of Coal Fly Ash, Ceramic Tile Wastes and Spent Econo
Bleaching Earth for the Production of Sodium Aluminoslicate
Monolith mic 55
R.C. Macasil, A.P.P. Redublo, A.C.Santos, C.I.V.Torres Study
PAMANTASAN NG LUNGSOD NG MAYNILA
University of the City of Manila
College of Engineering and Technology
Department of Chemical Engineering
The total amount of money needed to put GeoLith Inc.’s project into
operation is Php 110,249,878.06
From table 13.1, the total direct cost is Php 69,589,605.43. The
breakdown of some direct costs such as equipment installation,
instrumentation and process controls, electrical equipment, yard
improvements, service facilities were presented in the table below:
Table 13.2: Breakdown of Some Direct Cost
Allotted Cost
Direct Cost Components Percentage
(Php)
Equipment Installation Cost
Labor 35% 1,710,877.28
Foundations 10% 488,822.08
Supports 20% 977,644.16
Platforms and Ladders 12% 586,586.50
Construction Expenses 15% 733,233.12
Safety Services 8% 391,057.66
4,888,220.80
Instrumentation and Control Cost
Instrumentation Costs 55% 1,209,834.65
Installation Labor Costs 30% 659,909.81
Auxiliaries 15% 329,954.90
2,199,699.36
Electrical Equipment Cost
Power Wiring 40% 611,027.60
Lighting 12% 183,308.28
Transformation and Service 40% 611,027.60
Instrument Control Wiring 8% 122,205.52
1,527,569.00
Service Facilities Cost
Steam Generation & Distribution 22% 1,453,254.83
Water Utilities 21% 1,416,923.46
Electric Utilities 12% 835,621.53
Process Waste Disposal 8% 544,970.56
Sanitary Waste Disposal 2% 145,325.48
Communications 1% 72,662.74
Geopolymerization of Coal Fly Ash, Ceramic Tile Wastes and Spent Econo
Bleaching Earth for the Production of Sodium Aluminoslicate
Monolith mic 56
R.C. Macasil, A.P.P. Redublo, A.C.Santos, C.I.V.Torres Study
PAMANTASAN NG LUNGSOD NG MAYNILA
University of the City of Manila
College of Engineering and Technology
Department of Chemical Engineering
From table 13.1, the total working capital is Php 9,692,898.21. The
breakdown of working capital such as company registration and raw material
inventory were presented in the table below:
Geopolymerization of Coal Fly Ash, Ceramic Tile Wastes and Spent Econo
Bleaching Earth for the Production of Sodium Aluminoslicate
Monolith mic 58
R.C. Macasil, A.P.P. Redublo, A.C.Santos, C.I.V.Torres Study
PAMANTASAN NG LUNGSOD NG MAYNILA
University of the City of Manila
College of Engineering and Technology
Department of Chemical Engineering
START-UP EXPENSE
Start-up expense is the costs for the first 3 months of the plant
operation which is vital for the company’s expenses since there will be
changes before the plant can operate at maximum design conditions. The
total start-up expense amounts to Php 12,077,989.30, which is 10% of the
total production cost. The breakdown of this expense is detailed in Table 13.5.
Table 13.4: Breakdown of Total Start-up Expense
TOTAL START UP EXPENSE
Startup Expense Cost in Php
MANUFACTURING COST
Direct Production Cost
Raw Materials 2,522,155.18
Operating Labor 1,643,576.76
Direct Supervisory (12.5% of OL) 287,625.93
Utilities (15% of TPC) 1,811,698.40
Maintenance and Repairs (5% of FCI) 603,341.88
Operating Supplies (0.75% of FCI) 75,417.73
Laboratory Charges (15% of OL) 246,536.51
Patents (3% of TPC) 362,339.68
7,552,692.08
Fixed Charges
Depreciation 131,806.60
Local Taxes (2.5% of FCI) 251,392.45
Insurance (0.7% of FCI) 70,389.89
453,588.93
Plant Overhead Cost (10% of TPC) 1,207,798.93
Geopolymerization of Coal Fly Ash, Ceramic Tile Wastes and Spent Econo
Bleaching Earth for the Production of Sodium Aluminoslicate
Monolith mic 59
R.C. Macasil, A.P.P. Redublo, A.C.Santos, C.I.V.Torres Study
PAMANTASAN NG LUNGSOD NG MAYNILA
University of the City of Manila
College of Engineering and Technology
Department of Chemical Engineering
The total production cost needed for the operation of GeoLith Inc.
amounts to Php 120,779,893.01. The detailed list of costs is presented in
Geopolymerization of Coal Fly Ash, Ceramic Tile Wastes and Spent Econo
Bleaching Earth for the Production of Sodium Aluminoslicate
Monolith mic 60
R.C. Macasil, A.P.P. Redublo, A.C.Santos, C.I.V.Torres Study
PAMANTASAN NG LUNGSOD NG MAYNILA
University of the City of Manila
College of Engineering and Technology
Department of Chemical Engineering
Table 13.5. The approximate percentages used were based from the average
values of the given range by Peters and Timmerhaus in the Plant Design and
Economics for Chemical Engineers (4th Ed.), pp. 210.
The total production cost is the sum of manufacturing cost and general
expenses. The breakdown of the total production cost is shown in Table 13.x.
Geopolymerization of Coal Fly Ash, Ceramic Tile Wastes and Spent Econo
Bleaching Earth for the Production of Sodium Aluminoslicate
Monolith mic 61
R.C. Macasil, A.P.P. Redublo, A.C.Santos, C.I.V.Torres Study
PAMANTASAN NG LUNGSOD NG MAYNILA
University of the City of Manila
College of Engineering and Technology
Department of Chemical Engineering
Geopolymerization of Coal Fly Ash, Ceramic Tile Wastes and Spent Econo
Bleaching Earth for the Production of Sodium Aluminoslicate
Monolith mic 62
R.C. Macasil, A.P.P. Redublo, A.C.Santos, C.I.V.Torres Study
PAMANTASAN NG LUNGSOD NG MAYNILA
University of the City of Manila
College of Engineering and Technology
Department of Chemical Engineering
PPP 2019
CostofRawMaterials2024 =CostofRawMaterials2019 ×
PPP 2024
Major Raw Material
The major raw materials used by GeoLith Inc. are the coal fly ash,
ceramic tile wastes and spent bleaching earth which will be supplied by the
Pozzolanic Philippines Inc., Mariwasa Siam Philippines and Lepanto Ceramics
Inc., and lastly is San Pablo Manufacturing Corporation.
Since ceramic tile waste and spent bleaching earth are considered
waste in their respective industries, the raw materials will be purchased for
Php50 per sack or 50kg (Php1/kg) for packaging purposes. Also, the
transportation cost for the collection of the raw material will be shouldered
by GeoLith Inc. without getting any compensation from the supplier. On
the other hand, coal fly ash will be purchased at Php 3.5 per kg. The cost of
these raw materials are summarized in Table 12.x.
Requirement Projected
Total
(kg) Php/k Total
Raw Annual
Source g Annual
Material Dail Cost
Yearly (2019) Cost
y (2019)
(2024)
Pozzolanic
Coal Fly 4,80 1,440,0 5,040,000. 5,808,813.
Philippines 3.5
Ash 0 00 00 56
Inc.
Mariwasa
Siam
Ceramic
Philippines 3,33 1,000,8 1,000,800. 1,153,464.
Tile 1
and 6 00 00 41
Waste
Lepanto
Ceramics Inc.
Spent San Pablo
Bleachin Manufacturin 500 150,000 1 150,000.00 172,881.36
g Earth g Corporation
7,135,159
Total Projected Cost of Major Materials in 2024
.32
Geopolymerization of Coal Fly Ash, Ceramic Tile Wastes and Spent Econo
Bleaching Earth for the Production of Sodium Aluminoslicate
Monolith mic 63
R.C. Macasil, A.P.P. Redublo, A.C.Santos, C.I.V.Torres Study
PAMANTASAN NG LUNGSOD NG MAYNILA
University of the City of Manila
College of Engineering and Technology
Department of Chemical Engineering
The minor raw materials to used by GeoLith Inc. are in Table 6.XX
which will be supplied by Himmel Industries Inc. located at Pinamucan Ibaba,
Batangas.
The agreement between the supplier and the company for the minor
raw materials is that the cost of transportation will be shouldered by GeoLith,
Inc. The cost of the minor raw materials are summarized in Table 12.x.
The total amount for direct cost for raw material is the sum of major
raw material of Php 7,135,159.32 and the minor raw materials of Php
18,086,392.43, which is Php 25,221,551.76
Geopolymerization of Coal Fly Ash, Ceramic Tile Wastes and Spent Econo
Bleaching Earth for the Production of Sodium Aluminoslicate
Monolith mic 64
R.C. Macasil, A.P.P. Redublo, A.C.Santos, C.I.V.Torres Study
PAMANTASAN NG LUNGSOD NG MAYNILA
University of the City of Manila
College of Engineering and Technology
Department of Chemical Engineering
Operating labor cost is the sum of all wages paid to employees as well
as the cost of the employee benefits and payroll taxes paid by an employer.
The cost of labor is divided into direct and indirect costs. Direct costs include
wages for the employees physically making a product while the indirect costs
are associated with support labor. Table 13.X shows the summary of projected
annual operating labor costs.
Sample Calculation:
To calculate the projected annual labor costs for the year 2024,
IC 2024
PAC 2024 =TAC 2019 ( IC 2019 )
Where:
IC2024 = Index of Compensation for Year 2024
IC2019 = Index of Compensation for Year 2019
PAS2024 = Projected Annual Labor Cost for Year 2024
TAS2019 = Total Annual Labor Cost for Year 2019
For CEO position,
Annual Basic Salary=12 × Present Monthly Salary=12 × PhP80,000=PhP 960,000
Total Annual Labor Cost = Annual Basic Salary+ SSS+ PhilHealth+ PAG−IBIG+13 th Month Pay
Total Annual Labor Cost =960,000+14504.40+13,200+19,200+ 80,000
Total Annual Labor Cost =PhP 1,086,904.40
Geopolymerization of Coal Fly Ash, Ceramic Tile Wastes and Spent Econo
Bleaching Earth for the Production of Sodium Aluminoslicate
Monolith mic 65
R.C. Macasil, A.P.P. Redublo, A.C.Santos, C.I.V.Torres Study
PAMANTASAN NG LUNGSOD NG MAYNILA
University of the City of Manila
College of Engineering and Technology
Department of Chemical Engineering
Geopolymerization of Coal Fly Ash, Ceramic Tile Wastes and Spent Bleaching Earth for the Production of Economic
Sodium Aluminoslicate Monolith 66
R.C. Macasil, A.P.P. Redublo, A.C.Santos, C.I.V.Torres Study
PAMANTASAN NG LUNGSOD NG MAYNILA
University of the City of Manila
College of Engineering and Technology
Department of Chemical Engineering
The present annual salary of each position was used to compute for the annual salary of each position. The
number of people assigned to each position was considered in the computation. The employee benefits such as SSS,
PhilHealth, PAG-IBIG and 13th Month Pay was added to the annual salary of each position to obtain the total annual
labor cost and projected the annual labor cost for the year 2024 using the indices of compensation for 2019 and
2024. Therefore, the total number of employees and the total operating labor cost is 48 people and PhP
16,435,767.63, respectively
Geopolymerization of Coal Fly Ash, Ceramic Tile Wastes and Spent Bleaching Earth for the Production of Economic
Sodium Aluminoslicate Monolith 68
R.C. Macasil, A.P.P. Redublo, A.C.Santos, C.I.V.Torres Study
PAMANTASAN NG LUNGSOD NG MAYNILA
University of the City of Manila
College of Engineering and Technology
Department of Chemical Engineering
Geopolymerization of Coal Fly Ash, Ceramic Tile Wastes and Spent Econo
Bleaching Earth for the Production of Sodium Aluminoslicate
Monolith mic 69
R.C. Macasil, A.P.P. Redublo, A.C.Santos, C.I.V.Torres Study
PAMANTASAN NG LUNGSOD NG MAYNILA
University of the City of Manila
College of Engineering and Technology
Department of Chemical Engineering
V −Vs
d=
n
Where:
d = Depreciation each year
V = Cost of Equipment (Book Value)
Vs=Salvage Value
n = Economic Life
Sample Calculation:
V −V s
d a (double roll crusher)=
n
438,709.68−0.10( 438,709.68)
d a (double roll crusher)=
12
d a (double roll crusher)=PHP 32,903.23/ year
a
V a=V (1−f )
1 a
d a=
V −V a
=
V −V (( ) )
Vs
V
n
n n
Where:
V=Cost of Equipment (Book Value)
Vs=Salvage Value
n=Economic Life
f=Depreciation rate
a=Depreciable year
Sample Calculation:
1 a
n
1 10
438,709.68−438,709.68 ( ( 0.1 ) ) 12
d a (double roll crusher)=
12
d a (double roll crusher)=PHP 31,192.99/ yea r
The Sinking Fund Method was computed using the equation below.
d=(V −V s)
[ i
( 1+ i )n−1 ]
Where:
d=Depreciation year
V=Cost of Equipment (Book Value)
n=Economic Life
Vs=Salvage Value
i=Annual interest
Sample Calculation:
The Sum of the Years Digit was computed using the equation below.
d=(V −V s)
[ 2(n−a+1)
n(n+1) ]
Sample Calculation:
Projected DEPRECIATION
Cost Per
Total Cost
Equipmen Double-
Equipment Per Straight- Sinking Sum of
t-PHP Declining
Equipmen Line Fund the Year
(2019) Balance
t (2022)
Process Equipment
Coal Fly Ash
1 100,000.00 109,677.42 8,225.81 7,798.25 5,049.28 3,796.53
Silo
Pneumatic 10,098.5
2 200,000.00 219,354.84 16,451.61 15,596.50 7,593.05
Conveyor 1 6
Double Roll 20,197.1 15,186.1
3 400,000.00 438,709.68 32,903.23 31,192.99
Crusher 3 0
Belt
4 82,000.00 89,935.48 6,745.16 6,394.56 4,140.41 3,113.15
Conveyor
20,197.1 15,186.1
5 Ball Mill 400,000.00 438,709.68 32,903.23 31,192.99
3 0
Pneumatic 10,098.5
6 200,000.00 219,354.84 16,451.61 15,596.50 7,593.05
Conveyor 2 6
7 Isopropanol 110,000.00 120,645.16 9,048.39 8,578.07 5,554.21 4,176.18
Storage
Geopolymerization of Coal Fly Ash, Ceramic Tile Wastes and Spent Econo
Bleaching Earth for the Production of Sodium Aluminoslicate
Monolith mic 72
R.C. Macasil, A.P.P. Redublo, A.C.Santos, C.I.V.Torres Study
PAMANTASAN NG LUNGSOD NG MAYNILA
University of the City of Manila
College of Engineering and Technology
Department of Chemical Engineering
Tank
Batch
1,866,634. 2,047,276. 153,545.7 145,564.7 94,251.6 70,867.2
8 Leaching
00 00 0 5 2 5
Tank
Agitated
25,246.4 18,982.6
9 Nutsche 500,000.00 548,387.10 41,129.03 38,991.24
1 3
Filter
Pneumatic 10,098.5
10 200,000.00 219,354.84 16,451.61 15,596.50 7,593.05
Conveyor 3 6
Rotary 12,976.6
11 257,000.00 281,870.97 21,140.32 20,041.50 9,757.07
Dryer 6
Pneumatic 10,098.5
12 200,000.00 219,354.84 16,451.61 15,596.50 7,593.05
Conveyor 4 6
Ribbon 26,256.2 19,741.9
13 520,000.00 570,322.58 42,774.19 40,550.89
Blender 7 4
Pneumatic 10,098.5
14 200,000.00 219,354.84 16,451.61 15,596.50 7,593.05
Conveyor 5 6
Sodium
Silicate
15 110,000.00 120,645.16 9,048.39 8,578.07 5,554.21 4,176.18
Storage
Tank
Water
16 Storage 150,000.00 164,516.13 12,338.71 11,697.37 7,573.92 5,694.79
Tank
Sodium
Hydroxide
17 105,000.00 115,161.29 8,637.10 8,188.16 5,301.75 3,986.35
Dilution
Tank
Hydrogen
Peroxide
18 95,000.00 104,193.55 7,814.52 7,408.34 4,796.82 3,606.70
Dilution
Tank
Batch
1,866,634. 2,047,276. 153,545.7 145,564.7 94,251.6 70,867.2
19 Stirred Tank
00 00 0 5 2 5
Reactor
Double Belt
37,364.6 28,094.2
20 Laminating 740,000.00 811,612.90 60,870.97 57,707.04
9 9
Conveyor
Steam
1,500,000. 1,645,161. 123,387.1 116,973.7 75,739.2 56,947.8
21 Curing
00 29 0 2 3 9
Chamber
Steam
19,692.2 14,806.4
22 Curing 390,000.00 427,741.94 32,080.65 30,413.17
0 5
Tunnel
Electric
1,041,935. 47,968.1 36,067.0
23 Steam 950,000.00 78,145.16 74,083.36
48 8 0
Boiler
12,220,552 916,541.4 868,901.6 562,604. 423,019.
Total Process Equipment Cost .00 0 9 55 11
Basin
Neutralizati
2 on Contact 88,250.00 96,790.32 7,259.27 6,881.95 4,455.99 3,350.43
Basin
Sedimentati
3 44,216.00 48,494.97 3,637.12 3,448.07 2,232.59 1,678.67
on Tank
Aeration
4 54,458.00 59,728.13 4,479.61 4,246.77 2,749.74 2,067.51
Basin
Trickling 30,388.7 22,849.1
5 601,842.21 660,085.00 49,506.38 46,933.15
Filter 1 0
Final
6 44,216.00 48,494.97 3,637.12 3,448.07 2,232.59 1,678.67
Clarifier
Total Wastewater Treatment 982,141.7 73,660.6 69,831.9 45,215.4 33,997.2
Equipment Cost 8 3 2 2 2
Auxiliary Equipment
Cargo Truck 3,094,965.8 142,484.7 107,133.4
1 2,821,880.60 232,122.44 220,057.25
(4 units) 2 1 3
Minor Raw
Materials 26,458.2 19,893.8
2 524,000.00 574,709.68 43,103.23 40,862.82
Truck (1 4 0
unit)
Forklift (2 32,311.1 24,294.5
3 639,916.11 701,843.48 52,638.26 49,902.25
units) 7 8
Total Auxiliary Equipment 4,371,518. 327,863.9 310,822.3 201,254. 151,321.
Cost 97 2 1 12 81
TOTAL EQUIPMENT COST in 2020 TOTAL DEPRECIATION COST (Php)
1,318,065 1,249,555 809,074. 608,338.
₱17,574,212.75 .96 .92 09 13
Geopolymerization of Coal Fly Ash, Ceramic Tile Wastes and Spent Econo
Bleaching Earth for the Production of Sodium Aluminoslicate
Monolith mic 74
R.C. Macasil, A.P.P. Redublo, A.C.Santos, C.I.V.Torres Study
PAMANTASAN NG LUNGSOD NG MAYNILA
University of the City of Manila
College of Engineering and Technology
Department of Chemical Engineering
ANNUAL SALES
For GeoLith, Inc., it is expected to sell 80% of its annual rated plant
capacity of 31,200 sodium aluminosilicate monolith panels and 4,617,600
(1,050,960kg) cylindrical monolith adsorbent on its starting year. The
remaining 20%, called as unsold goods, was considered as the company’s
finished goods inventory that is added to succeeding year sales.
A. Selling Price
For estimation of the selling price, the equation below will be used:
Estimated Sale> Expenses
Selling Price× RPC ×%Sales> Total Cost of Production
Where:
RPC = Rated Plant Capacity
Selling Price = Selling price of panels and adsorbent
Panel
Existing Selling Price of Panel Php 3,500 – 4,500
Calculating for the selling price of cylindrical adsorbent,
Production cot for Adsorbent
Selling Priceof Adsorbent>
Rated Plant Capacity∗%Sales
Php 36,233,967.90
Selling Priceof Adsorbent>
1,050,960 kg∗0.80
Selling Priceof Adsorbent> Php 43.10 per kg
Actual Selling Price of GeoLith Inc. Php 110 per kg
Adsorbent
Existing Selling Price of Adsorbent Php 60-200 per kg
B. Annual Sales
The total annual sales of the company is computed by multiplying the
capacity of the plant by the selling price of the product. As a starting
company, it is assumed that only 80% of the produced monolith is sold.
For panels,
Total Annual Sales of Panel=Rated Plant Capacity x Selling price x %sales
Php 4.000
Total Annual Sales of Panel=31,200 panel x x 0.80
panel
Total Annual Sales of Panel=Php 99,840,000.00
For adsorbent,
Total Annual Sales of Adsorbent=Rated Plant Capacity x Selling price x %sales
Php 110
Total Annual Sales of Adsorbent=1,050,960 kg x x x 0.80
kg
Total Annual Sales of Adsorbent=Php 92,484,480.00
C. Inventory
[
Inventory= 31,200 panel x
Php 4,000
panel ][
x ( 1−0.80 ) + 1,050,960 kg x
Php110
kg
x (1−0.80 ) ]
Inventory=Php 48,081,120.00
SOURCES OF FINANCING
The total capital needed for the establishment of GeoLith Incorporated
for the production of sodium aluminosilicate monolith amounts to Php
200,000,000.00, which is the sum of the total capital investment, start-up
expenses and 45% of the total production cost for the sustainability of the
operation, and allowances for excess and contingency funds.
The total fund needed will come from the company owners’ share and
a bank loan from Metropolitan Bank and Trust Company (Metrobank).
GeoLith Inc. and Metrobank have mutually agreed to a financing mix of
40%/60% in which the bank will shoulder 40% (equivalent to Php
80,000,000.00) of the total initial investment while the remaining 60%
(equivalent to Php 120,000,000.00) will be coming from the shareholder’s
capital as presented in Table 13.x.
00
On the other hand, the Php 80,000,000.00 to be loaned from the bank
will be used to finance the following expenses, as presented in Table 13.x.
Table 13.x: Issuance of Bank Loan
The loan from the bank will be primarily used for recruitment and
training of employees in January 2023, start-up operation expenses in
November 2023, and for the production cost. The detailed usage of loan from
bank is shown in drawdown schedule in Table 13.x.
The term given by Metropolitan Bank and Trust Company is ten (10)
years, inclusive of four (4) years grace period. GeoLith Inc. will apply for
the loan worth Php 80,000,000.00 in the year 2022, a year before the target
drawdown (January 2023).
Collateral Condition:
Other Conditions
1. Metrobank-Credit Appraisal and Management’s (MB-CAM) report on the
valuation/validation of the total project cost;
2. Engagement by GeoLith Inc. of the services of SEC-accredited external
auditor, starting with its 2022 financial statements;
3. Establishment of a Debt Service Reserve Account covering at least one
(1) amortization of principal and interest for the duration of the loan
Geopolymerization of Coal Fly Ash, Ceramic Tile Wastes and Spent
Bleaching Earth for the Production of Sodium Aluminoslicate Economic
81
Monolith Study
R.C. Macasil, A.P.P. Redublo, A.C.Santos, C.I.V.Torres
PAMANTASAN NG LUNGSOD NG MAYNILA
University of the City of Manila
College of Engineering and Technology
Department of Chemical Engineering
MODES OF PAYMENT
The bank and the company has agreed to have a 10-year contract
wherein the loan would be amortized monthly with 4 years grace period for
the first four years. The company would pay the interest and the principal
amount monthly for a period of 6 years starting 2026. The interest will be
fixed at 6.5% rate per annum. The payment will start on the January 27,
2026, and will be continued every month thereafter.
Sample Computation:
Since the payment is deferred for four (4) years from 2022-2025, the
total annual payment (annuity) from 2026-2031 is computed as:
k+n
1+i¿ i
¿
1+i ¿n−1
¿
P¿
Annuity ( A)=¿
where:
P = principal amount (Php 80,000,000)
i = interest rate (6.5%)
k = deferred time (4)
n = no. of periods (6)
A=Php 21,259,454.62
Moreover, this annual payment will be divided into 12 equal payments per
month. The monthly amortization is computed as:
Php 21,259,454.62
Monthly Ammortization=
12 months
Monthly Ammortization=Php 1,771,621.22
Also, the base payment is the difference between the monthly amortization
and the monthly interest,
The figure below shows the cash flow diagram, the orange arrow is the loan
received, while the green arrow of the annuity to be paid divided equally into
12 monthly payments of Php 1,771,621.22.
The present worth (2022) was also calculated to determine how much of the
original principal loan of Php 80,000,000.00 was already paid.
Present Worth=S
[ ] 1
( 1+i )n
where:
For example, at 2026, which is the 5th loan period, the present worth is:
Geopolymerization of Coal Fly Ash, Ceramic Tile Wastes and Spent Bleaching Earth for the
Production of Sodium Aluminoslicate Monolith Economic Study 86
R.C. Macasil, A.P.P. Redublo, A.C.Santos, C.I.V.Torres
PAMANTASAN NG LUNGSOD NG MAYNILA
University of the City of Manila
College of Engineering and Technology
Department of Chemical Engineering
Geopolymerization of Coal Fly Ash, Ceramic Tile Wastes and Spent Bleaching Earth for the
Production of Sodium Aluminoslicate Monolith Economic Study 87
R.C. Macasil, A.P.P. Redublo, A.C.Santos, C.I.V.Torres
PAMANTASAN NG LUNGSOD NG MAYNILA
University of the City of Manila
College of Engineering and Technology
Department of Chemical Engineering
Geopolymerization of Coal Fly Ash, Ceramic Tile Wastes and Spent Bleaching Earth for the
Production of Sodium Aluminoslicate Monolith Economic Study 88
R.C. Macasil, A.P.P. Redublo, A.C.Santos, C.I.V.Torres
PAMANTASAN NG LUNGSOD NG MAYNILA
University of the City of Manila
College of Engineering and Technology
Department of Chemical Engineering
Table 13.x shows the amortization schedule wherein the monthly payment of GeoLith Inc. to Metropolitan
Bank and Trust Company (Metrobank) for a period of 6 years from 2026-2031 is presented. The total bank loan of
GeoLith Inc. is Php 80,000,000.00. Since this amount must be paid back within 10 years, deferred by 4 years,
GeoLith Inc. must pay an amortization of Php 1,771,621.22 every month or an annuity of Php 21,259,454.62. An annual
interest rate of 6.5% was given by the bank and this is equivalent to 0.5416% interest rate per month. The
drawdown of the loan was scheduled on the November 2023 and with a 4-year grace period, the start of the interest
and principal payment will be on January 27, 2026. The annual interest expense was accounted in the income
statement as well as in the discounted cash flow. An overall amount of Php 127,556,727.75 must be paid by the
company to the bank to return back the Php 80,000,000.00 principal and to finance the required interest expense.
Geopolymerization of Coal Fly Ash, Ceramic Tile Wastes and Spent Bleaching Earth for the
Production of Sodium Aluminoslicate Monolith Economic Study 89
R.C. Macasil, A.P.P. Redublo, A.C.Santos, C.I.V.Torres
PAMANTASAN NG LUNGSOD NG MAYNILA
University of the City of Manila
College of Engineering and Technology
Department of Chemical Engineering
DRAWDOWN SCHEDULE
SHAREHOLDER'
BANKLOAN
ISSUANCE OF S CAPITAL
ACTIVITIES COST
INVESTMENT 80,000,000.0
120,000,000.00
0
2020
Land Purchasing 1,943,553.38 118,056,446.62
Application of Business Permit and Registration 1,285,714.29 116,770,732.33
Hiring of Contractor for Plant Construction 5,567,168.43 111,203,563.90
Hiring of Engineers for Supervision of Plant 12,178,180.9 From
99,025,382.95
Construction 5 Shareholder's
Preparation for Construction (Indirect Cost) 6,263,064.49 Capital 92,762,318.46
Allocation of Fund for Contingencies during
6,958,960.54 85,803,357.91
Construction
Administrative Building Construction 6,684,923.08 79,118,434.84
2021
Quality Control Building 1,485,538.46 77,632,896.38
18,124,615.3
Product Storage Warehouse From 59,508,280.99
8
Shareholder's
Raw Material Warehouse 4,531,153.85 54,977,127.15
Capital
Service Facilities Installation
6,721,303.60 48,255,823.55
(Water, Electric, Fire Protection)
2022
12,220,552.0 From
Purchasing and Delivery of Process Equipment 36,035,271.55
0 Shareholder's
Purchasing and Delivery of Wastewater Treatment Capital
982,141.78 35,053,129.77
Equipment
Purchasing and Delivery of Auxiliary Equipment 4,371,518.97 30,681,610.79
Purchasing and Delivery of Piping Materials 2,075,732.97 28,605,877.82
Process Equipment and Piping Installation 4,888,220.80 23,717,657.02
Geopolymerization of Coal Fly Ash, Ceramic Tile Wastes and Spent Bleaching Earth for the
Production of Sodium Aluminoslicate Monolith Economic Study 90
R.C. Macasil, A.P.P. Redublo, A.C.Santos, C.I.V.Torres
PAMANTASAN NG LUNGSOD NG MAYNILA
University of the City of Manila
College of Engineering and Technology
Department of Chemical Engineering
Geopolymerization of Coal Fly Ash, Ceramic Tile Wastes and Spent Bleaching Earth for the
Production of Sodium Aluminoslicate Monolith Economic Study 91
R.C. Macasil, A.P.P. Redublo, A.C.Santos, C.I.V.Torres
PAMANTASAN NG LUNGSOD NG MAYNILA
University of the City of Manila
College of Engineering and Technology
Department of Chemical Engineering
21,526,666.59
The drawdown schedule shows the usage of loan from bank. The 1st drawdown will be on 2023 wherein a
total of ₱16,744,300.55 will be used for recruitment and training of employees, and to finance the startup
operation of the plant. Moreover, the 2nd drawdown will be on 2024 wherein ₱56,668,515.36 (equivalent to
approximately 45% of the cost of production) will be used for the sustainability of the operation. From a total of
200M capital investment, the total amount of Php 21,526,666.59 was left and will be included in the company’s
assets for 2025.
Geopolymerization of Coal Fly Ash, Ceramic Tile Wastes and Spent Bleaching Earth for the
Production of Sodium Aluminoslicate Monolith Economic Study 92
R.C. Macasil, A.P.P. Redublo, A.C.Santos, C.I.V.Torres
PAMANTASAN NG LUNGSOD NG MAYNILA
University of the City of Manila
College of Engineering and Technology
Department of Chemical Engineering
FINANCIAL STATEMENTS
The financial statements are formal records of the financial activities
and position of the company. These reports usually include statement of
financial position, income statement, statement of cash flow, and statement
of changes in equity.
I. Balance Sheet
The balance sheet, also known as statement of financial position,
reports on the company's assets, liabilities, and owners’ equity at a given
point in time. Table 13.xx shows the statement of financial position of the
company, which consists of all the assets and liabilities of the company for
the year 2024. It is evident that the cost of total assets is equal to the cost of
the total liabilities and equities of the company.
II. Income Statement
The income statement, also known as a statement of comprehensive
income, statement of revenue and expense, profit and loss report, presents
the company's income, expenses, and profits over a period of time. This
statement, as shown in Table 13.xx, provides information on the operation of
the company, and includes sales and the various expenses incurred during
the stated period. The net income or earned money for the said year will be
used as the new budget to finance the expenses of the company for the next
year operation.
III. Discounted Cash Flow Statement
The statement of cash flow reports on the company's cash flow
activities, particularly its operating, investing, and financing activities as
shown in Table 13.xx. With the ending cash balance presented, the company
can still supply its need in order to pay its obligations and use the other cash
available for other purchases and operations, and thus, can still finance itself
for future operation and manufacturing.
BALANCE SHEET
As of December 31, 2024
ASSETS LIABILITIES
Current Assets Current Liabilities
101,086,885.5
Annual Sales 9 Taxes 10,155,201.83
Inventory 84,733,200.00
185,820,085.
Total Fixed Assets 59
Long-Term
Fixed Assets Liabilities
13,2
Purchased Equipment 02,693.78 Loan Payable 80,000,000.00
Purchased Equipment
Installation 4,888,220.80
Instrumentation and TOTAL
Controls 2,199,699.36 LIABILITIES 90,155,201.83
Piping 2,075,732.97
Electrical Equipment
and Materials 1,527,569.00
Buildings 30,826,230.77
Land 1,943,553.38
TOTAL
255,377,339. LIABILITIES AND 255,377,339.3
TOTAL ASSETS 35 EQUITIES 5
Analysis on the Balance Sheet
INCOME STATEMENT
(December 31, 2024)
197,710,80
Sales 0.00
Cost of Goods 96,623,914.
Sold 41
101,086,88
Gross Profit 5.59
Expenses
12,718,180.
Engineering and Supervision 95
6,263,064.4
Construction Expenses 9
5,567,168.4
Contractor's Fee 3
6,958,960.5
Contingency 4
3,801,816.8
Administrative Expenses 6
Distribution, Marketing, and 13,258,788.
Selling Expenses 23
Research and Development 6,038,994.6
Expenses 5
12,077,989.
Start-up Expense 30
Financing Expenses (Front-End
Fee) 551,249.39
67,236,21
Total Expenses 2.84
The income statement of GeoLith Inc. for year 2024 shows the
earnings of the company and as well as its expenses for the whole year. The
net operating income is calculated as the sum of total annual sales
subtracted by the costs of goods sold, expenses, and taxes. The net income
of the company is Php 23,695,470.93 from its annual sales of PhP
197,710,800.00.
Table 13.XX Cash Flow Statement of GeoLith Inc. For Year 2024
Loan Payment -
10,155,201.8
Income Tax Expense 3
191,131,852
Total Cash Outflow .71
206,578,94
Net Cash Balance 7.29
d=6.10
This discounted interest rate together with the number periods (N),
with 2024 as base year, will then be used to calculate the present value
factor (PVF), which will be used to determine the net present value estimate.
1
PVF 2024 = ×100
(1+i ) N
1
PVF 2024 = ×100
(1+0.0654 )1
PVF 2024 =93.90
The PVF will be multiplied to the cash at the end of the year found in
Table 13.XX to estimate the net present value. The net present value (NPV) of
a project or investment reflects the degree to which cash flow exceeds the
amount of investment capital required to fund it. A higher net present value
indicates that the project or investment is more profitable. The NPV for the
year 2024 can be calculated as follows.
NPV 2023 =(Cash at the End of the Year)(PV F 2023 )
NPV 2023 =Php243,300,110.74 Table 13.XX Discounted Cash Flow of GeoLith Inc.
Year
Discounted Cash Flow
2024 2025 2026 2027 2028 2029
Panels 31 4
Plant Rated Capacity (pcs) ,200.00 0,560.00 50,700.00 60,840.00 69,966.00 76,962.60
Adsorbent 1,05 1,3 1,7 2,0 2,3 2,5
s (kg) 0,960.00 66,248.00 07,810.00 49,372.00 56,777.80 92,455.58
Selling Price Panels 4000.00 4000.00 4000.00 4200.00 4200.00 4200.00
Adsorbent
s 150.00 150.00 150.00 150.00 150.00 150.00
Percent Sales 70% 75% 80% 85% 90% 95%
1,3 1,3 1,3 1,3 1,3
Depreciation 1,318,065.96 18,065.96 18,065.96 18,065.96 18,065.96 18,065.96
Cash Inflow
197,71 275,3 367, 478, 582,6 676,5
Annual Sales 0,800.00 82,900.00 177,200.00 493,730.00 36,483.00 05,694.15
80,00
Loan Proceeds 0,000.00 - - - - -
120,00
Share Capital 0,000.00 - - - - -
397,71 275,3 367,1 478,4 582, 676,
Total Cash Inflow 0,800.00 82,900.00 77,200.00 93,730.00 636,483.00 505,694.15
Cash Outflow
1,94
Land 3,553.38 - - - - -
1,28
Company Registration 5,714.29 - - - - -
Property, Plant, and 67,646,052.05
Equipment - - - - -
12,71
Engineering and Supervision 8,180.95 - - - - -
Geopolymerization of Coal Fly Ash, Ceramic Tile Wastes and Spent Bleaching Earth for the
Production of Sodium Aluminoslicate Monolith Economic Study 100
R.C. Macasil, A.P.P. Redublo, A.C.Santos, C.I.V.Torres
PAMANTASAN NG LUNGSOD NG MAYNILA
University of the City of Manila
College of Engineering and Technology
Department of Chemical Engineering
6,26
Construction Expenses 3,064.49 - - - - -
5,56
Contractor's Fee 7,168.43 - - - - -
6,95
Contingency 8,960.54 - - - - -
26,860,952.6
28,606,914.54 30,466,363.99 32,446,677.65 34,555,711.70
Direct Material 25,221,551.76 2
17,504,092.5
18,641,858.54 19,853,579.35 21,144,062.00 22,518,426.03
Direct Labor 16,435,767.63 3
Manufacturing Overheads 1,207,798.93 1,286,305.86 1,369,915.74 1,458,960.26 1,553,792.68 1,654,789.21
Administrative Expenses 3,801,816.86 4,048,934.96 4,312,115.73 4,592,403.25 4,890,909.46 5,208,818.58
Distribution, Marketing, and 14,120,609.4
15,038,449.08 16,015,948.27 17,056,984.91 18,165,688.93
Selling Expenses 13,258,788.23 6
Research and Development
6,431,529.30 6,849,578.71 7,294,801.32 7,768,963.41 8,273,946.03
Expenses 6,038,994.65
Geopolymerization of Coal Fly Ash, Ceramic Tile Wastes and Spent Bleaching Earth for the
Production of Sodium Aluminoslicate Monolith Economic Study 101
R.C. Macasil, A.P.P. Redublo, A.C.Santos, C.I.V.Torres
PAMANTASAN NG LUNGSOD NG MAYNILA
University of the City of Manila
College of Engineering and Technology
Department of Chemical Engineering
Geopolymerization of Coal Fly Ash, Ceramic Tile Wastes and Spent Bleaching Earth for the
Production of Sodium Aluminoslicate Monolith Economic Study 102
R.C. Macasil, A.P.P. Redublo, A.C.Santos, C.I.V.Torres
PAMANTASAN NG LUNGSOD NG MAYNILA
University of the City of Manila
College of Engineering and Technology
Department of Chemical Engineering
The cash inflow is composed of the annual sales, loan proceeds, and
share capital. The cash outflow, on the other hand, is composed of investing
and operations activities. Included in the cash outflow as well is the interest
expense, principal loan payment, and income tax expense which is 30%
(Philippine Domestic Corporate Tax) of the net income before tax. The cash at
the beginning and at the end of the year was accounted to determine
whether the company has sufficed amount to finance the future years of
operation. It was observed that the cash at the end of the year is significantly
higher than the cost of goods sold which means that the company can
sustain its future operations.
2. Rate of Return
Rate of Return (ROR), also called as Return of Investment, refers to
either gain or loss of an investment over a specified period, expressed as a
percentage increase over the initial investment cost. Gains on investments
are considered to be any income received plus any capital gains realized on
the sale of the investment. Rate of return (ROR) on investment is expressed
on an annual percentage basis. It is the yearly profit before tax divided by the
total initial investment necessary, multiplied by one hundred. The following
formula will be used to compute for the rate of return on investment before
and after income tax.
ROR Before Tax:
Income Before Tax
ROR Before Tax= × 100
Total Initial Investment of theOwners
3. Break-even Point
The break-even point for a product is the point at which cost or
expenses and revenue are equal; there is no net loss or gain which means
that the profit is equal to zero. Similarly, it is where the total cost of goods
manufactured equals the total sales.
Total Cost of Goods Manufactured=Total Sales
Total Cost of Goods Manufactured=( Selling Price ) x ( N )
Total Cost of Goods Manufactured
N=
Selling Price
84,545.925.11
N panel =
Php 4000
N panel =21,136.48 panel/ year
36,233,967.90
N cylinder =
Php110
N cylinder =329,399.7082 kg / year
N panel
BEP panel =
Plant Rated Capacity
21,136.48
BEP=
31,200.00
BEP panel =67.75
N cylinder
BEP cylinder =
Plant Rated Capacity
329,399.7082
BEP=
1,050,960
BEP=31.34
This percentage implies that at least 67.75% of the plant rated capacity
of panel and 31.34% of the cylindrical monolith must be manufactured and
sold to breakeven the cost allotted in producing the product.
4. Payout Period
Payout period, or payout time, is the minimum length of time
theoretically necessary to recover the original capital investment in the form
of cash flow to the project based on the total income minus all costs except
depreciation. The following formula will be used according to Granger et al.
(2000), The Best Test Preparation & Review Course FE/EIT Fundamentals of
Engineering/engineer-in-training:
Total Investment of theOwners
Payout Period =
Ave . Profit per Annum + Ave . Depreciation per Annum
120,000,000.00
Payout Period =
19,925,046.93+ 1,318,065.96
Payout Period =5.65 years
Payout Period ≈ 5 years∧8 months
OVERALL CONCLUSION
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