1. FEASIBILITY STUDIES

2. FEASIBLE CAPABLE OF BEING DONE OR CARRIED OUT CAPABLE OF BEING DONE OR CARRIED OUT PRACTICABLE, POSSIBLE AND WITHIN REASON PRACTICABLE, POSSIBLE AND WITHIN REASON FOR A PROJECT, ONE WHICH WILL RESULT TO A REASONABLE RETURN OF INVESTMENT TO THE FINANCIERS OR DEVELOPERS. FOR A PROJECT, ONE WHICH WILL RESULT TO A REASONABLE RETURN OF INVESTMENT TO THE FINANCIERS OR DEVELOPERS.

4. SPECTRUM OF ARCHITECTURAL SERVICES

5. DEVELOPMENT TEAM DEVELOPER AS THE KEY PROJECT PROPONENT DEVELOPER AS THE KEY PROJECT PROPONENT ARCHITECT ARCHITECT FEASIBILITY ANALYST OR ECONOMIC ADVISOR FEASIBILITY ANALYST OR ECONOMIC ADVISOR ENGINEERING CONSULTANTS ENGINEERING CONSULTANTS CONTRACTOR CONTRACTOR MORTGAGE LOAN BROKER MORTGAGE LOAN BROKER OTHERS DEPENDING ON THE NATURE OF THE PROJECT OTHERS DEPENDING ON THE NATURE OF THE PROJECT

6. PROJECT FEASIBILITY STUDY

7. FINANCIAL STUDY FINANCE – MONEY, RESOURCES, INCOME FINANCE – MONEY, RESOURCES, INCOME THE SCIENCE OF MANAGING MONEY MATTERS. THE SCIENCE OF MANAGING MONEY MATTERS. ART/SCIENCE OF MANAGING FUNDS AND RESOURCES MOBILIZED OVER A PERIOD OF TIME TO ACHIEVE SPECIFIC GOALS AND OBJECTIVES. ART/SCIENCE OF MANAGING FUNDS AND RESOURCES MOBILIZED OVER A PERIOD OF TIME TO ACHIEVE SPECIFIC GOALS AND OBJECTIVES.

8. BUSINESS VENTURES, IMPORTANT DEFINITIONS PROJECT – VENTURE TO INVEST RESOURCES IDENTIFIED AS CASH FUNDS, TIME, AND HUMAN RESOURCES, IN ORDER TO ACCOMPLISH A SPECIFIC OBJECTIVE. PROJECT – VENTURE TO INVEST RESOURCES IDENTIFIED AS CASH FUNDS, TIME, AND HUMAN RESOURCES, IN ORDER TO ACCOMPLISH A SPECIFIC OBJECTIVE. BUSINESS VENTURE – WHEN VENTURES ENTAILS PRODUCING UNITS SELLING THEM AND GENERATING REVENUES. BUSINESS VENTURE – WHEN VENTURES ENTAILS PRODUCING UNITS SELLING THEM AND GENERATING REVENUES.

9. INVESTMENT – THE RESOURCES POURED IN THE PROJECT IN THE FORM OF CASH FUNDS. INVESTMENT – THE RESOURCES POURED IN THE PROJECT IN THE FORM OF CASH FUNDS. CAPITAL – RELATIVELY HUGE AMOUNT OF INVESTMENT PUT INTO A PROJECT TO START THE PROJECT OR TO ALLOW FOR A SUBSTANTIAL EXPANSION OF OPERATIONS. CAPITAL – RELATIVELY HUGE AMOUNT OF INVESTMENT PUT INTO A PROJECT TO START THE PROJECT OR TO ALLOW FOR A SUBSTANTIAL EXPANSION OF OPERATIONS. PROJECT COST – AMOUNT OF RESOURCES REQUIRED BY THE PROJECT WHICH INCLUDE CONSTRUCTION COST, LAND, PROFESSIONAL SERVICES, TAXES, ETC. PROJECT COST – AMOUNT OF RESOURCES REQUIRED BY THE PROJECT WHICH INCLUDE CONSTRUCTION COST, LAND, PROFESSIONAL SERVICES, TAXES, ETC.

10. REVENUES – TOTAL PESO AMOUNT EARNED FROM SALES, LESSEES AND THE LIKE (e.g. SALES OF LOTS, CONDOMINIUM UNITS, OFFICE UNITS) REVENUES – TOTAL PESO AMOUNT EARNED FROM SALES, LESSEES AND THE LIKE (e.g. SALES OF LOTS, CONDOMINIUM UNITS, OFFICE UNITS) PROFIT – REVENUE LESS COST PROFIT – REVENUE LESS COST EQUITY – PART OF FUNDS TO FINANCE A PROJECT, RAISED BY THE OWNER/DEVELOPER WHICH IS SUBJECT TO VENTURE’S RISKS. EQUITY – PART OF FUNDS TO FINANCE A PROJECT, RAISED BY THE OWNER/DEVELOPER WHICH IS SUBJECT TO VENTURE’S RISKS. LOAN, DEBT – PART OF FUNDS TO FINANCE THE PROJECT, BORROWED FROM A LENDING INSTITUTION WHICH IS USUALLY SUBJECT TO GUARANTEE/ASSURANCE OF PAYMENT – COLLATERAL. LOAN, DEBT – PART OF FUNDS TO FINANCE THE PROJECT, BORROWED FROM A LENDING INSTITUTION WHICH IS USUALLY SUBJECT TO GUARANTEE/ASSURANCE OF PAYMENT – COLLATERAL.

11. CASH FLOW – IS THE BEHAVIORAL DESCRIPTION OF A PROJECT’S INFLOW AND OUTFLOW OF FUNDS OVER A PERIOD OF TIME, THE DIFFERENCE BEING THE NET CASHFLOW. CASH FLOW – IS THE BEHAVIORAL DESCRIPTION OF A PROJECT’S INFLOW AND OUTFLOW OF FUNDS OVER A PERIOD OF TIME, THE DIFFERENCE BEING THE NET CASHFLOW. RETURN OF INVESTMENT – PROFIT DIVIDED BY INVESTMENT. RETURN OF INVESTMENT – PROFIT DIVIDED BY INVESTMENT.

12. PROJECT COST, INVESTMENT CONSTRUCTION COST CONSTRUCTION COST ACTUAL CONSTRUCTION – LABOR & MATERIALS ACTUAL CONSTRUCTION – LABOR & MATERIALS PROFESSIONAL FEES (ARCHITECTS, ENGINEERS, CONSULTANTS) PROFESSIONAL FEES (ARCHITECTS, ENGINEERS, CONSULTANTS) EQUIPMENT EQUIPMENT PERMITS, LICENSES. PERMITS, LICENSES.

13. PROJECT COST LAND COST LAND COST TAXES TAXES INSURANCE INSURANCE INTEREST DURING CONSTRUCTION (ON ADVANCED CAPITAL) INTEREST DURING CONSTRUCTION (ON ADVANCED CAPITAL) OTHER ALLOWANCES /CONTINGENCIES AND PRE- OPERATING COSTS. OTHER ALLOWANCES /CONTINGENCIES AND PRE- OPERATING COSTS.

14. BASIC MECHANICS OF FINANCIAL STUDIES FOR DEVELOPMENT PROJECTS GROSS/COMMON/NET AREAS GROSS/COMMON/NET AREAS NET AREAS – LEASABLE/SALEABLE AREAS. NET AREAS – LEASABLE/SALEABLE AREAS. GROSS AREAS – COMMON AREAS AND NET AREAS GROSS AREAS – COMMON AREAS AND NET AREAS

15. NET AREAS AND GROSS AREAS SUBDIVISION SUBDIVISION N.A.- LOTS, C.A.- ROADS, PARKS N.A.- LOTS, C.A.- ROADS, PARKS RESIDENTIAL CONDOMINIUMS RESIDENTIAL CONDOMINIUMS N.A.- RESIDENTAL UNITS PLUS PARKING SLOTS, C.A.- ELEVATOR CORE, SERVICE AREAS, LOBBY N.A.- RESIDENTAL UNITS PLUS PARKING SLOTS, C.A.- ELEVATOR CORE, SERVICE AREAS, LOBBY SHOPPING MALLS SHOPPING MALLS N.A.- STORES, COMMERCIAL SPACES N.A.- STORES, COMMERCIAL SPACES C.A.- SERVICE AREAS, HALLWAYS, PARKING AREAS. C.A.- SERVICE AREAS, HALLWAYS, PARKING AREAS.

16. SELLING PRICE CONDOMINIUM BUILDING CONDOMINIUM BUILDING TOTAL PROJECT COST P100,000,000 TOTAL PROJECT COST P100,000,000 DIVIDED BY NET AREA 10,000 DIVIDED BY NET AREA 10,000 COST/SQ.M 10,000 COST/SQ.M 10,000 PLUS MARGIN (SAY 40%) 4,000 PLUS MARGIN (SAY 40%) 4,000 BASE SELLING PRICE 14,000 BASE SELLING PRICE 14,000

17. LEASING AREAS NET COST/SQ.M P 10,000 NET COST/SQ.M P 10,000 RETURN RATE(/YEAR) 12% RETURN RATE(/YEAR) 12% USUALLY RELATED TO USUALLY RELATED TO THE COST OF MONEY THE COST OF MONEY RENTAL RATES/SQ.M P 1,200/SQ.M RENTAL RATES/SQ.M P 1,200/SQ.M DIVIDED BY 12 MONTHS/YR DIVIDED BY 12 MONTHS/YR RENTAL/SQ.M P 100/SQ.M RENTAL/SQ.M P 100/SQ.M

18. REVENUE TOWNHOUSE TOWNHOUSE NET SALEABLE AREA/UNIT 100 SQ.M NET SALEABLE AREA/UNIT 100 SQ.M NO. OF UNITS 10 NO. OF UNITS 10 TOTAL NET AREA 1000 SQ.M TOTAL NET AREA 1000 SQ.M X SELLING PRICE P15,000/SQ.M X SELLING PRICE P15,000/SQ.M TOTAL REVENUE P15,000.000 TOTAL REVENUE P15,000.000

19. REVENUE COMMERCIAL APARTMENT COMMERCIAL APARTMENT NET LEASABLE AREA/UNIT 200 SQ.M NET LEASABLE AREA/UNIT 200 SQ.M NO. UNITS 50 NO. UNITS 50 TOTAL NET AREA 10,000 SQ.M TOTAL NET AREA 10,000 SQ.M X LEASE RATE/MONTH P 200/SQ.M X LEASE RATE/MONTH P 200/SQ.M P2,000,000/SQ.M/MONTH P2,000,000/SQ.M/MONTH X 12 X 12 TOTAL REVENUE P24,000,000

20. INCOME STATEMENT TOWNHOUSE PROJECT (PERIOD OF PRE-SELLING & CONSTRUCTION TOWNHOUSE PROJECT (PERIOD OF PRE-SELLING & CONSTRUCTION EX. EX. GROSS REVENUES P15,000,000 GROSS REVENUES P15,000,000 LESS: LESS: PROJECT COST 10,000,000 PROJECT COST 10,000,000 GROSS PROFIT 5,000,000 GROSS PROFIT 5,000,000

21. GROSS PROFIT P5,000,000 LESS: COST OF ADMIN. 200,000 COST OF OVERHEAD 100,000 MARKETING EXPENSES 700,000 SUB-TOTAL P1,000,000 NET INCOME BEFORE TAXES P4,000,000 TAX 35% 1,400,000

22. NET INCOME P2,600,000 11% 11% NET INCOME RETURN FROM GROSS SALE RETURN ON INVESTMENT ROI = INCOME / INVESTMENT = P2,600,000 / P10,000,000 = 26% RETURNS

23. PAYBACK PERIOD – AMOUNT OF TIME NEEDED TO RECOVER ALL THE INVESTMENTS. TOTAL INVESTMENT P120,000,000 AVERAGE INCOME PER YEAR P 24,000,000 PAYBACK PERIOD = P120,000,000 P 24,000,000 = 5 YEARS