Selecting a project that should be undertaken by an organization is a daunting task and is probably the most important decision the organization has to make. There are many factors to take into account before an organization can decide which proposal should be accepted as a project and which should be rejected. The organization must choose the most practical proposal, which must be in line with the future objectives and requirements of the organization. Since the organization must decide which project would be feasible and which project deserves approval, several project selection methods come into use. It is very important to choose the correct method for project selection. This choice ultimately decides which project the organization should undertake. Therefore organizations need to be very careful in terms of project selection, as even a small mistake could prove disastrous for the project as a whole and could harm the organization as a whole as well. long term. Selection Methods Different project selection methods are used by different organizations based on management decision and suitability to their particular line of business. All these methods have different features and characteristics. Therefore each selection method is suitable for different organizations. While these project selection methods may be different, the basic principles and concepts remain the same. In the next image we can see two of these methods: benefit measurement and payback period method (constrained optimization method) Benefit measurement methods are used when different projects need to be compared with each other. This can include different styles of comparison, some of which are discussed halfway through the article in most cases. So we can say that it is enough to choose the net present value method or the internal rate of return method. It is also called the economic rate of return (ERR) method. Advantages and disadvantages of IRR1. Perfect use of the time value theory of money2. All cash flows are equally important3. Uniform classification4. Maximum shareholder profitability5. It is not necessary to calculate the cost of capitalDisadvantages of the internal rate of return1. Understanding IRR is difficult2. Not useful for comparing two mutually exclusive investments. Implementation of the chosen method: The above-mentioned methods can be used in different combinations in every organization. There may also be other factors that need to be taken into consideration in addition to the methods discussed above, so the choice of project should be made very carefully.