CHAPTER 3

Methods, Procedures and Sources of Data

This chapter presents the research methodology, the procedure in

gathering data as well as the sources that were used in
conducting the study.

Research Method Used

The researchers aimed to determine whether the proposed

project is feasible and profitable. The researchers used the
descriptive method of research. Descriptive means “distinctive
word, phrase or sentence applied in a particular product in
advertising.” It involves description, analysis and
interpretation of the existing condition. In other words,
descriptive research maybe defined as a purposive process of
gathering, analyzing, classifying and tabulating data about
prevailing conditions, practices, beliefs, processes, trends,
and cause effect relationships and then making adequate and
accurate interpretation about such data with or without the aid
of statistical method.

Techniques Used in Data Gathering

The researchers used the following techniques in gathering

data, namely: Interview, Library Techniques, Internet and
Observation.

Interview: The researchers conducted interviews to gather

data with regard to technical, financial, marketing and
management aspects.

Library Techniques: The researchers used various kinds of

library materials such as books, Encyclopedia, dictionary, and
other references.
 Internet: The researchers surf the internet to scan and
look for the different websites containing the related topic.
(Example: Encarta, etc.)

Observation: In supporting the information gathered through

interview, observation was also made for the validation of this
study. The researchers visited and observed the production
process of coffee.

Treatment Data

This chapter presents several measures used to determine

the viability and feasibility of the project study. The
following are identified and tested to determine their effect on
the overall project feasibility study.

1. ARR (Average Rate of Return) – It represents the ratio of

average annual income after taxes to the average investment
(Financial Policy: pp. 715). This method is sometimes based
upon the original investment rather than upon the average.

ARR = Average Income After Tax

Average Original Investment

2. Payback Period – This represents the number of years in

order to fully recover the initial investment. It is the
ratio of initial investment over the annual cash flow for
recovery period. (Ibid., pp. 121)

Payback Period= Net cost of Initial Investment

Annual Net Cash Flow