Project selection is a process of evaluating individual or group

projects, in turn choosing to implement some of them in order to

achieve specific goals. Whereas in the selection of the project, the
selection process of the project USES both financial and non-financial
methods. According to sounder, the selection model of the project is
based on such important things as:
• be realistic (reflect manager's realistic decisions);
• capabilities (best designed);
• be flexible (appropriate);
• easy to use;
• charge;
• ized (use of technology).
There are several methods of project selection, both financially and
non-financially sound financial criteria:
1. Payback period (pp) is a method of analysis for knowing payback
time investment. By this method we learn how long it takes for the
investment value of the project to provide a profit or in other words
how long cashflow can cover the initial investment costs. The
payback period will be achieved if the cumulative value of cashflow
is following a positive valuation
2. Return on investment (ROI) is a net profit on investment. The
method measures the selection of projects based on the most
profitable choice of projects.
3. Net present velue (NPV) according to santosa (2008:164-165) is
the present value of money or cashflow in the future time considering
interest rate (interest rate). Using this method, current value of
investment can be analyzed whether it provides profit or
disadvantages in the next few years according to the estimates of
cashflow and its discount/interest rate.
4. The internal rate of retun (irr) is a discount rate that results in
NPV being zero. Acceptance or rejection of the proposed investment
plan based on this method is to compare the irr with the required
interest rate (atractive rate rate of return marr). If the irr is larger than
the interest rate required it is accepted, where it is smaller is rejected.
5. Break even analysis is defined as a circumstance in which the
organization does not make a profit and does not suffer loss. It is also
called profi analysis, which aims to reduce the minimum amount
needed to produce to avoid cost, setting out the amount of sales to
achieve a certain profit and setting up the volume of sales acceptable
to avoid suffering loss.
Whereas the non financial criteria is test-ted scoring model is a mode
to select a project by identifying key succes factor ina project and then
weighing every factor so that it can be known which project is better.
The process of identification and manufacturing involves all
stakeholders together with other financial assessment models and thus
obtain a comprehensive assessment.
Mardiasmo (2005) stated that there are 4 factors to consider in
selecting technical, social and cultural aspects, economic and financial
aspects, and distribution aspects. Whereas other experts' opinion sets
out three criteria which need to be considered in selecting a project
which is the needs of the organization, the project category, and the
financial criteria.
According to my understanding, current projects still result in quality
projects. Why is that so? As a result, development of the current
project, it is still not completely equitable let's say construction
management projects. These provek deals with project management
such as the construction of public facilities or public facilities. A real-
life example of one day is freeway construction. DAMS, Bridges,
electrical buildings, et cetera. If we look at people living in rural areas
(especially rural rural areas) that still remain untouched by a decent
government road construction project for its local people, there is
nothing more than electricity. Furthermore, there are still schools that
do not have halls to learn how to wear properly. It is a consideration
that has to be taken into consideration by the government in carrying
out this project's equalizing of the life of all Indonesian people.

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The process of assessing individual or group projects and then deciding which ones to
implement in order to meet predetermined objectives is known as project selection. On the
other hand, both financial and non-financial strategies are used in the project selection
process. Sounder states that the project's selection model is predicated on factors such being
realistic (reflecting the manager's realistic decisions), having the best planned capabilities,
being flexible and appropriate, being easy to use, being charged, and being ized (using
technology).
There are various ways to choose projects, taking into account both strong financial and non-
financial criteria:
1. One analytical technique for determining payback time investment is payback period (pp).
Using this technique, we may determine how long cash flow can cover the project’s initial
investment expenditures, or how long it will take for the project’s investment value to yield a
return. If a positive valuation is followed by the cumulative value of cashflow, the payback
time will be reached.
2. A net profit on investment is the return on investment, or ROI. The methodology assesses
project selection by determining which initiatives are the most financially advantageous.
3. According to Santana (2008:164–1655), net present value (NPV) is the present value of
money or cash flow in the future when interest rates are taken into account. By employing
this technique, the present value of an investment may be evaluated to determine if it will
yield benefits or drawbacks over the following few years based on cash flow predictions and
interest rate/discount.
4. A discount rate known as the internal rate of return (irr) causes the net present value
(NPV) to be zero. By comparing the IRR with the required interest rate (atractive rate, or rate
of return marr), the suggested investment plan can be accepted or rejected using this method.
The interest rate is acceptable if it exceeds the requisite interest rate; if it is less, it is refused.
5. A situation when the company experiences neither a profit nor a loss is referred to as a
break-even analysis. Also known as profi analysis, its goals include minimizing the quantity
required to manufacture in order to minimize costs, determining the quantity of sales required
to generate a specific profit, and establishing the appropriate volume of sales in order to
prevent loss.
On the other hand, the non-financial criterion, known as the tested scoring model, is a
method of project selection that involves determining the project’s critical success factors and
weighing each one to determine which project is superior. To acquire a comprehensive
assessment, the identification and manufacturing process incorporates all stakeholders in
addition to other financial assessment methods.
According to Mardiasmo (2005), there are four things to take into account while choosing
technical elements: distribution aspects, financial and economic considerations, and social
and cultural components. In contrast, the opinions of other experts outline three factors—the
organization's needs, the project category, and the budgetary requirements—that must be
taken into account when choosing a project.
My belief is that current initiatives continue to produce high-caliber projects. Why is it the
case? As a result, let's say construction management projects, the existing project's
development is still not entirely equitable. These examples cover public facility development
and other project management-related topics. Freeway construction is an example of a day in
real life. Bridges, DAMS, electrical structures, etc.
There is nothing more than power for those who live in rural areas, especially those that are
rural and have not yet benefited from a good government road construction project.
Moreover, there are still schools without hallways where students can practice appropriate
attire. In order to implement this initiative and equalize the quality of life for all Indonesians,
the government must take this into account.