A Case Study
Prof. Dina Remoto-Wong
Ced Nina V. Palomar
Jycyrr Eric B. Dolor
Hannah Grace R. Teodosio
Jessa A. Ventoliro
Spyro Arnold P. Leduna
Dyck Nouwen V. Cedino
January 11, 2013
Metropolitan Housing Project Company
The Metropolitan Housing Project Company has to find a way to increase cash balance to pay liabilities, at the same time, not incur a loss, and increase revenue.
Objectives of the Management:
1. To settle all liabilities relative to the project
2. To increase the cash balance to P2.348M
3. To complete site development and,
4. To sell all residential lots
Alternative Courses of Action
1. Acquire a loan and us the money to complete site development.
Advantage: The Company, having enough money, will be able to complete site development so that it may open and start earning to be able to settle all outstanding liabilities. Disadvantage: The company will increase its debt.
2. Improve all residential lots and the area around the vicinity of the property and add compound facilities. This can be achieved through finishing the highway road leading to the site and adding amenities such as recreational facilities, clubhouse, etc.
Advantage: More buyers will be encouraged to buy residential lots since everything they need are already in one place, thus, increasing the revenue. Disadvantages: The company will incur more expenses.
3. Advertise the housing project to the general public and persuade investors through presenting to them projected sales reports and studies pertaining to the project.
Advantage: More investors may put in their money to the project and at the same time, knowledge of the site will enable others to buy lots ahead. As a result, capital for the project is...