Discipline: Management Accounting
FAROMA ice cream is made from guyabano fruit. It is a nutritious dessert or snack and a good source of Vitamin A which is good for the eyes and a good source of calcium for the bones.
The proposed project aimed to be recognized not only in Los Baños but also in nearby towns and cities. It also aimed to expand the business if it becomes successful in the next five years.
The proposed business’ initial investment would only take 1 year. The average return of investment in terms of accounting income is 332% every year. The proposed business is desirable because the profitability index is more than Php 1.00. It means that for every Php 1.00 invested, there would be a return of Php 10.04. Because the net present value is positive, the decision is to accept the project. This will lead to the profitability of the business.