Group: E

Group Leader: Gladyz Ann B. Sacramento

Group Members

Nicole Marie G. Maulawin

Trisha Villegas

Jen Baraceros

John Edward C. Geremillo

Course and Section:

Bachelor of Science in Business Administration major in

Marketing- 2B

Date of Submission:

April 6, 2016

Date of Presentation:

April 8, 2016

Professor: Mr. Migo M. Mendoza

Business’ Profile:

Company Name:

Chief Executive Officer: Ms. Gladyz Ann Sacramento

Managing Director: Ms. Nicole Marie Maulawin

Managing Director and Chief Administrative

Officer:Ms. Trish Villegas

Managing Director, Chief Revenue Officer:

Ms. Jen Baraceros

Director and Senior Investment Officer:

Mr. Joed Geremillo

EMPIRE Real Estate Company

Company Description:

One of the leading real-estate companies in the Philippines that

will help customers to provide information’s, and find properties that is for sale or for rent (all over

the country) that suits on your wanted place for business and etc.

Mission:To mobilize and deliver our

vast knowledge, resources and talent throughout the country on behalf of our clients, and to enable them to make the most informed real-estate decisions.

Client’s Profile:Client’s Profile:

Company Name:

Company Manager: Ms. Angelica Medina

Assistant Manager for Accounting and Finance:

Ms. Michaela Espiritu

Assistant Manager for Auditing: Ms. Fhearl Vismonte

Supervisor: Ms. Charriz Munar

Secretary: Mr. Alex Estrellado

DC Accounting Firm

Company Description:Provides full-range of accounting

services; Includes financial tips, links and description of services.

Specializing the needs of non-profit organizations and businesses that

includes company biography, service descriptions, auditing, financial

calendar and calculations.

Mission:

To help our clients accomplish their goals by

providing the highest quality accounting, audit, tax and

accounting-related professional services.

Vision:

The firm’s vision is to be the premier accounting, tax and business, consulting firm by every measure that matters.

Statement of the Problem

BUSINESS LOCATION

A woman just recently had her retirement. She got a P3,000,000.00 retirement fee as a manager of an accounting firm. She is planning to put up a business. Hence, she is looking for a good location of her business. However, there is a possibility that after five years she will go to Canada with her family and stay there for good. What is the best option you could provide to this type of client in choosing a good location for her business and in what payment scheme?

ObjectivesThis business report aims to:

Provide the client its appropriatebusiness location that will fit in theirAccounting Firm Business and;

Provide the most appropriatepayment scheme based on client’scapacity.

Methodology

1. Client’s Concerns

A)Client would like to have a proper business location that is good for 5 years.

ResolutionsDefinition of Payment Scheme

The problem calls for a Simple Annuity Due. Annuity due is a type of annuity where the payments are made at the beginning of each payment interval, unlike the ordinary simple annuity the payment interval starts at the end of

each period. Simple Annuity Due is very applicable to almost all of payment for lease agreements. As our client's

request and approved by our company manager, the client will start paying their loan at the beginning of each rent

period, monthly, for 5 years.

Computations

The client agreed to a PHP. 1, 250, 000.00 worth of a five-year leasing contract for a business location. Moreover, the client agreed that our company will charge a 0.15 nominal rate of which is equivalent to an annual effective rate of 15% for leasing a business

location rent.

The computation for period monthly rent:

ConclusionBased on the client's capacity to pay their dues and client's request our company arrived in these conclusions:

Php 1, 250, 000.00 Lease Agreement for a business location.

Our company decided to implement the Simple Annuity Due as the payment scheme for a business location for five years. This will result to Php 29, 370.28 client's monthly lease. After five years of leasing this will yield to Php 1, 762, 216.80, thus our company will have a profit of Php 512, 216.80 from this lease agreement.

Breakdown of

Profits

Monthly Period In Five (5) Years

From the initial

amount invested

of Php 1, 250,

000, the amount

of rent that the

client is paying

Php 20, 833.33 Php 1, 249, 999.40

The Amount of

interest the client

is paying from the

15% nominal rate

Php 8, 536.94 Php 512, 216.40

Total: Php 29, 370.28 Php 1, 762, 216.80

Recommendation After thorough investigation, our company strongly

recommends these:

• simple annuity due is the appropriate payment scheme if the client and the company go on a lease agreement

• it is very important to meet the needs and wants of the clients to ensure their satisfaction;

• it is vital to ensure that while giving client's satisfaction one must not put company's profit at risk;

• it is important and essential to understand and to analyze the client's conditions regarding the agreement to prevent misunderstandings as the contract proceeds.

• It is an obligation to inform the clients about their possible liabilities and dues within the process and to clarify everything before the said agreement would start