Chapter-iii.docx

CHAPTER III

METHODS, PROCEDURES, AND SOURCE OF DATA

This chapter presents the research mechanics. It presents the research methodology, the procedures to be taken, instrument and data gathering techniques as well as the treatment of data. Method of Research Used The researchers will use descriptive method of research in this study. A descriptive research is a fact finding with adequate interpretation, recording and analysis of the condition that exists. It also tests viability of a particular proposal which helps identify whether the same is suited for operation. The main objective of this method is to analyze and to describe a certain variable to emphasize main thought and idea. Techniques of the Research Instrument Used in Data Gathering The following tools were used by gathering the necessary information needed. 1.) 2.)

3.)

4.)

the

researchers

in

Interview – this is conducted in a more or less informal conversation so as no to intimidate the interviewee. Questionnaire – the technique was used to find out the various comments of students and professionals regarding the feasibility of establishing “Novo Sport Center: Multi Indoor rental sports center” at Sta. Arcadia, Mabini Street Extension, Cabanatuan City, Nueva Ecija. Observation – this technique was used to gather additional information especially on matter pertaining to marketing, organization, the industry trend as whole. This was necessary to gather firsthand knowledge on these aspects and activities which otherwise could not have been learned simply from interview. Library Technique – this technique includes the researchers’ use of various library materials such as books, encyclopedias, magazines, and other reading materials for general references.

Instrumentation The researcher designed an interview schedule as one of the data collection instrument for this study. The costumers of NOVO Sports Centre shall be interviewed. The interview questions were aimed at eliciting relevant information concerning the experience and ambiance on the Sport Centre. Sources of Data The target respondents of the study will be the students or professionals who play sports in sport centers. They will be

asked about their satisfaction on their experience on sports centers. It is important to get their opinion so that there will be assurance of customer satifaction Statistical Treatment of Data The formula below is used to calculate the sample size (𝑆2 ) given the total number of population (N) with the standard value (V) of 2.58, the sampling error and a margin of error (𝐸2 ) of 0.01 and the largest possible proportion (p) of 0.50. 𝑆2 =

NV + [𝐸 2 (1 − 𝑝)] NE + [𝑉 2 𝑝(1 − 𝑝)]

Whereas: S2 = sample size N = total number of population V = standard value (2.58) at 1% level of probability with 0.99 reliability E2 = sampling error (0.01) p = largest possible proportion (0.50)

Financial Treatment of Data To test the viability of the project, the following indicators and barometers were used by the researchers. 1.)

Return of Investment – rate that this would return promised by investors consider the

foremost among investors is the give. This significant rate of the investment project, when time value of the investment.

ROI= Net Operating Income Total Average Investment

Payback Period It measures the length of time required to recover the amount of initial investment. It is the time interval between times of the initial outlay and the full recovery of the investment.

Payback Period =

Net Initial Investment Annual Cash Flows

Net Present Value It is the excess amount of the present value of cash inflows generated by the project over the amount of initial investments. A positive value would mean that the project is acceptable. PV of Cash Inflows

xx

Less: Net Investment

xx

Net Present Value (NPV)

xx