Budgeting Methods Research Articles

Application of Capital Budgeting Method to Evaluate Investment Decisions on Additions to Fixed Assets at PT Hatten Bali

This research was conducted to evaluate the investment decision to add fixed assets by PT Hatten Bali using the capital budgeting method. The results of this study are expected to be used as material for evaluating the application of the capital budgeting method in making investment decisions on fixed assets at PT Hatten Bali. The data used for this study were obtained from interviews and documentation and were analyzed using descriptive qualitative research analysis techniques with a case study approach. Based on the results of research using the capital budgeting method which consists of the method of calculating the payback period, net present value, profitability index, internal rate of return and average rate of return, all of which have shown a favorable results. From these results it can be concluded that the investment decision to add fixed assets in the form of distribution vehicles made by PT Hatten Bali can benefit the company in stable sales conditions and the application of capital budgeting methods can reduce the risk of errors or failures in making investment decisions and improve subsequent investment decisions.

A study on capital budgeting practices of some selected companies in Bangladesh

Purpose The purpose of this paper is to investigate the current capital budgeting practices in Bangladeshi listed companies and provide a normative framework (guidelines) for practitioners. Design/methodology/approach Data were collected with a structured questionnaire survey taking from the chief financial officers (CFOs) of companies listed in the Dhaka Stock Exchange in Bangladesh. Garnered data were then analyzed using descriptive and inferential statistical techniques. Findings The results found that net present value was the most prevalent capital budgeting method, followed closely by internal rate of return and payback period. Similarly, the weighted average cost of capital was found to be the widely used method for calculating cost of capital. Further, results also revealed that CFOs adjust their risk factor using discount rate. Originality/value The findings of this study might help the firms, policymakers and practitioners to take a wise decision while evaluating investment projects. Additionally, this study’s findings enrich the existing body of knowledge in the field of capital budgeting practices by providing more reliable and comprehensive analysis taking samples from a developing economy.

Methods for operational risk’s analysis of entrepreneurial structures in civil engineering

The object of this research work is constructional business structures’ activity. The subject of the research is the connection between profit and work volume, taking into account a construction company’s tax and economic specifics. This research work’s goal is to develop formulas for calculating the break-even point (BEP) of a construction (contracting) company. In this case, the company can use three tax regimes. Firstly, it is the general taxation system (GTS), where the value added tax is paid. Secondly, it is a simplified taxation system (STS) with the object of taxation “income”. Thirdly, it is the taxation object STS “income reduced by the amount of expenses.” Methods of budgeting, methods of calculating tax liabilities, algebra, and general scientific methods are used to obtain the results. The approbation was carried out on the economic model of a construction firm, compiled with the use of data on the estimated cost of a building object in Novosibirsk. As a result, formulas have been developed for calculating the construction companies’ BEP, using STS, as well as BEP formulas of construction companies with the use of STS with various objects of taxation. These three BEPs values comparison is carried out, which proves the influence of the taxation system on the risks magnitude, the taxation system with the highest BEP is shown. The effect paradoxicality of STS on the tax liabilities amount, profits and operational risks is shown.

Assessment of Investment Plan and Financing Strategy for Hobbyist-Based Marketplace as a New Business from PT XYZ

PT XYZ is a successful technology enterprise, intends to open a new business line in e-commerce with unique selling propositions as a hobbyist-based marketplace. The marketplace, ABC, has built website and application generating event registration, communities, and articles. ABC still needs to reduce bugs and acquiring sellers to sell their products on. ABC needs to seek investments to fulfill the required financing at IDR 245,000,000 since PT XYZ needs to reallocate the money to another business. It firstly needs to determine the financial feasibility study of ABC with the capital budgeting method of NPV, IRR, and Payback Period. The amount of NPV at IDR 500,722,291.51, IRR at 13.32%, and PP at 4 years 2 months and 19 days are acceptable. The risk assessment with sensitivity analysis and Monte Carlo simulation determine the accounts that are risked by the assumption from the owners, the high risk are on Bike Selling quantity and COGS also Salary (Full-Time) with the probability of positive IRR at 97.80%. ABC wants to have financing schemes of 65%, 45%, and 25% equity where PT XYZ will give IDR 25,000,000 and intangible asset of IDR 61.600.000, this makes the 25% equity cannot be used, therefore it will be changed to 35.35% equity. With total share outstanding of 10.000 shares, the sales price of A, B, and C are IDR 46,199.55, IDR 43,803.40, and IDR 42,771.43 respectively. Capital structure analysis is needed to get the best value of ownership, yet, all alternatives can be used for attracting investors.

Assessment of Investment Plan and Financing Strategy for Hobbyist-Based Marketplace as a New Business from PT XYZ

PT XYZ is a successful technology enterprise, intends to open a new business line in e-commerce with unique selling propositions as a hobbyist-based marketplace. The marketplace, ABC, has built website and application generating event registration, communities, and articles. ABC still needs to reduce bugs and acquiring sellers to sell their products on. ABC needs to seek investments to fulfill the required financing at IDR 245,000,000 since PT XYZ needs to reallocate the money to another business. It firstly needs to determine the financial feasibility study of ABC with the capital budgeting method of NPV, IRR, and Payback Period. The amount of NPV at IDR 500,722,291.51, IRR at 13.32%, and PP at 4 years 2 months and 19 days are acceptable. The risk assessment with sensitivity analysis and Monte Carlo simulation determine the accounts that are risked by the assumption from the owners, the high risk are on Bike Selling quantity and COGS also Salary (Full-Time) with the probability of positive IRR at 97.80%. ABC wants to have financing schemes of 65%, 45%, and 25% equity where PT XYZ will give IDR 25,000,000 and intangible asset of IDR 61.600.000, this makes the 25% equity cannot be used, therefore it will be changed to 35.35% equity. With total share outstanding of 10.000 shares, the sales price of A, B, and C are IDR 46,199.55, IDR 43,803.40, and IDR 42,771.43 respectively. Capital structure analysis is needed to get the best value of ownership, yet, all alternatives can be used for attracting investors.

Wintertime Nitrous Oxide Emissions in the San Joaquin Valley of California Estimated from Aircraft Observations.

Nitrous oxide (N2O) is a long-lived greenhouse gas that also destroys stratospheric ozone. N2O emissions are uncertain and characterized by high spatiotemporal variability, making individual observations difficult to upscale, especially in mixed land use source regions like the San Joaquin Valley (SJV) of California. Here, we calculate spatially integrated N2O emission rates using nocturnal and convective boundary-layer budgeting methods. We utilize vertical profile measurements from the NASA DISCOVER-AQ (Deriving Information on Surface Conditions from COlumn and VERtically Resolved Observations Relevant to Air Quality) campaign, which took place January-February, 2013. For empirical constraints on N2O source identity, we analyze N2O enhancement ratios with methane, ammonia, carbon dioxide, and carbon monoxide separately in the nocturnal boundary layer, nocturnal residual layer, and convective boundary layer. We find that an established inventory (EDGAR v4.3.2) underestimates N2O emissions by at least a factor of 2.5, that wintertime emissions from animal agriculture are important to annual totals, and that there is evidence for higher N2O emissions during the daytime than at night.

Dice manufacturing company: the acquisition decision

Learning outcomes The learning outcomes of this paper is as follows: understand the issues that faced private Egyptian textile producers following the January 2011 revolution and how that impacted their business model. Evaluate whether Dice’s inorganic expansion through acquiring Alex Clothing Company is a sound strategic decision given the economic uncertainty in Egypt. Analyze the acquisition decision through projection evaluation techniques, including net present value (NPV), internal rate of return (IRR) and modified IRR (MIRR), to measure whether the acquisition will add value to Dice. Discuss non-financial issues post-acquisition that are not captured by traditional capital budgeting and project evaluation techniques. Case overview/synopsis Dice Manufacturing Company, an established and successful textile manufacturing family business, is facing an important investment decision with regard to inorganic expansion through the acquisition of Alex Clothing Company and its subsidiary United Dyers. The case is intended to be discussed in an undergraduate corporate finance class. The case setting is inside Dice Manufacturing Company, where one of the founders, Nagy Toma and his CFO Victor ElMalek are analyzing the acquisition decision in January 2015. The protagonist is Victor ElMalek, who has to recommend a course of action for the company owners. The case allows students to apply capital budgeting and project valuation methods to make a decision on whether the acquisition brings value to Dice and to analyze issues management can face post-acquisition. The case follows through the history of Dice, presenting its business model and changes that accompanied the 2011 revolution. It then moves on to outline the acquisition opportunity and provides data for students to analyze through traditional project valuation techniques, including NPV, IRR and MIRR. Complexity academic level Undergraduate. Subject code CSS 1: Accounting and Finance. Supplementary materials Teaching notes are available for educators only.

THE FUNCTIONS OF PUBLIC EXPENDITURES IN PUBLIC MANAGEMENT, ECONOMIC AND SOCIAL SYSTEMS OF A COUNTRY

Introduction. The functions of public expenditures reveal their intended purpose in the regulation of various processes and explain their role in the attainment of specific goals. Scientific literature provides extensive insights into definitions of budget functions in market democracies, but the functional purpose of public expenditures is covered only fragmentarily. The purpose of the article is to present a scientific substantiation for the system of public expenditure functions in the market democracies. Results. Based on the analysis of public expenditure functions, we believe that it would be feasible to substantiate the functions separately for each of the two main spheres directly affected by public expenditures, namely public management and the economic and social system of the country. In the public management sphere, public expenditures perform the functions of control and planning (programming). The essence of the planning function consists in using public expenditures to create conditions and provide necessary incentives for rational performance-based planning of the activities carried out by public authorities, as well as for attainment of target performance indicators by applying the results-oriented budgeting method. The function of control is preconditioned by the specifics of public management system functioning in a democratic society, which consists in assuring that the society has control over activities of public authorities. The influence of public expenditures on the national economy and its social system occurs through functions of allocation, redistribution and stimulation. The function of allocation consists in providing the population with goods and services that cannot be supplied by the market economy in sufficient volumes. The essence of the redistribution function consists in using public expenditures with the aim of decreasing income inequality among members of the society, regional development of territories or solving other tasks. The public expenditure function of stimulation aims to stimulate certain directions of economic activity by means of changing the volumes, components or structure of public expenditures through different mechanisms of their realization. Conclusions. In result of performing a theoretical study of the functional purpose of the budget in a market economy and a critical analysis of scientific postulates allow us to substantiate the feasibility of identifying the following functions of public expenditures: planning (programming), control, allocation, redistribution, and stimula tion.

Програмно-цільовий підхід як інструмент управління громадою

The article considers the theoretical foundations and practical aspects of the introduction of program-targeted approach in the management of the territorial community. Theoretical achievements, the existing domestic experience of application of the program-target approach to development of communities are generalized. The article considers the urgency of solving the problems of territorial communities by financing expenditures from local budgets. It is proved that the application of program-target planning in the context of structural reforms at the local level requires a high level of competence of local governments in the field of strategic management using a program-target approach. It is noted that it is important to clarify the content, criteria, performance indicators of program-targeted planning of local budget expenditures. The program-targeted approach best allows to identify and analyze existing problems in order to eliminate threats and risks in the process of developing and implementing strategic plans or programs for the development of local communities. Theoretical and practical aspects of the program-target method in the budget process of the community are considered, its role in the implementation of public administration is determined and measures to improve the efficiency of budget management are substantiated. The advantages of using the program-targeted budgeting method in Ukraine are shown. The program-target method is considered as a tool that provides planning and execution of the budget for the medium term. The main advantages of the program-target budgeting method are considered.

Application of Budgeting in Selected Municipal Companies in the Warmińsko-Mazurskie Voivodeship

This study aimed to determine the scope to which budgeting is used as a management method in selected enterprises of the municipal sector in the Warmińsko-Mazurskie Voivodeship. The research goal was achieved through the following tasks: identification of the reasons for and methods of budgeting used in enterprises of the municipal sector in the Warmińsko-Mazurskie Voivodeship and determining the methods of controlling budget implementation in the examined entities.
 The use of budgeting in the practice of Polish municipal enterprises, as well as the knowledge of how to use this management instrument, seems to be relatively common. Nevertheless, there are still entities convinced of the insufficient amount of benefits resulting from budgeting and that these benefits may be lower than the labour input and costs incurred in budgeting.
 Research has revealed that budgeting is used primarily in medium and large companies with annual revenues of over PLN 50,000,000 and employing over 200 employees. An important feature that connects all entities using budgeting is the desire to reduce costs and improve financial results. The desire to increase internal control and make more effective decisions was the main reason for the implementation of budgeting in these enterprises. The dominant methods of budgeting are the top-down and incremental methods. Budget control is exercised by various people and units. Disclosed deviations most often relate to exceeding the planned level of costs and failure to meet the deadlines for renovation and investment tasks.

Методичні підходи до оцінки бюджетної ефективності територій

Annotation. Introduction. According to the principles of the program-target method of budgeting, the diagnosis of budget efficiency of territories is the key goal of assessing the implementation of regional policy and improving the efficiency of budget funds, which, in turn, will not only determine the effectiveness of this process Therefore, assessing the level of budget efficiency of territories is a mandatory element of financial management at the local level. The purpose of the article is to study the methodological approaches of scientists to assess the budget efficiency of territories and on their basis the formation of the author’s directions of assessment of the object of study. Results. It is investigated that in recent years there have been positive trends in the socio-economic development of the state as a whole and its regions in particular, but still the development of individual regions remains asymmetric due to the inability of territories to accumulate the necessary financial resources to local budgets. places, which, in turn, does not contribute to providing appropriate conditions for the structural development of the regions. The existing methodological approaches are systematized, their advantages and disadvantages are analyzed and it is found that they are based on traditional methodological principles and provide for the analysis of absolute, relative indicators, integrated indices and rankings, etc.; do not have a single vision for a set of indicators; mainly focus on assessing the structure of the budget and the individual components of its revenue and expenditure parts. The necessity of improvement of a technique of diagnostics of budgetary efficiency of territories which will provide the analysis in the following directions is substantiated: the state of the budget; financial capacity of the budget; intergovernmental relations; financial independence; budget load; budgeting efficiency; budget management. Conclusions. The system of the formed directions will allow to estimate a level of budgetary efficiency of territories of Ukraine in the conditions of decentralization and to develop long-term budgetary strategy on places. Keywords: territory; methodical approaches; diagnostics; budget efficiency.

Deep In-Memory Architectures in SRAM: An Analog Approach to Approximate Computing

This article provides an overview of recently proposed deep in-memory architectures (DIMAs) in SRAM for energyand latency-efficient hardware realization of machine learning (ML) algorithms. DIMA tackles the data movement problem in von Neumann architectures head-on by deeply embedding mixed-signal computations into a conventional memory array. In doing so, it trades off its computational signal-to-noise ratio (compute SNR) with energy and latency, and therefore, it represents an analog form of approximate computing. DIMA exploits the inherent error immunity of ML algorithms and SNR budgeting methods to operate its analog circuitry in a low-swing/low-compute SNR regime, thereby achieving >100× reduction in the energy-delay product (EDP) over an equivalent von Neumann architecture with no loss in inference accuracy. This article describes DIMA's computational pipeline and provides a Shannon-inspired rationale for its robustness to process, temperature, and voltage variations and design guidelines to manage its analog nonidealities. DIMA's versatility, effectiveness, and practicality demonstrated via multiple silicon IC prototypes in a 65-nm CMOS process are described. A DIMA-based instruction set architecture (ISA) to realize an end-to-end application-toarchitecture mapping for the accelerating diverse ML algorithms is also presented. Finally, DIMA's fundamental tradeoff between energy and accuracy in the low-compute SNR regime is analyzed to determine energy-optimum design parameters.

COMPARING PROFITS OF ORGANIC AND NON-ORGANIC FLUTED PUMPKIN AMONG SMALLHOLDER FARMERS IN DELTA STATE, NIGERIA

The study was conceptualized to compare profits of organic and non-organic farming technologies among smallholder fluted pumpkin farmers in Delta State, Nigeria. A multistage sampling technique was employed in the selection of location and respondents. The data were collected using structured questionnaire from 240 organic and non-organic smallholder fluted pumpkin farmers. Data obtained was analyzed using descriptive statistics and enterprise budgeting method. Results indicated that the profit realized by organic and non-organic (conventional system) fluted pumpkin farmers was N561,850 and N222,130 per farmer per plot, respectively. The study concluded that organic system of vegetable production was more profitable than conventional system. It was recommended that farmers should concentrate more on organic system of fluted pumpkin production to enable good profit.

Investment Analysis of Waste Heat Recovery System Installations on Ships’ Engines

This study considers incentive provisions for investment decisions related to waste heat recovery system (WHRS) installations on ships to reduce CO2 emissions and improve ships’ engine efficiency. The economic assessment of WHRS installations in the shipping sector is not widely covered in the literature. A reason for this might be that the conventional financial evaluation of sensitive choices is commonly done through capital budgeting methods, which are not flexible enough to integrate future changes in fuel prices and long-term aspects of other costs. Thus, this work evaluates the WHRS investment using the classical budgeting instruments as well as the real-options approach (a more sophisticated approach) to accommodate the presumed expected future changes in the volatile maritime markets. Following the methodology of triangulation, three case studies of ships with varying operational conditions empirically validate the result to depict the practical use of the real-options evaluation method in investment assessment. The capital budgeting analysis reveals that the investment in maritime WHRS technology is only economically favorable under certain frame conditions projected in the work that shows a more realistic assessment of the project.

VALUE BASED MANAGEMENT IN THE NEW ECONOMY

The main objective of this paper is to investigate the updates brought by the New Economy, especially new business models brought by digitalization, on value-based management. This objective is to see if classic value-based management and the updates brought by the New Economy conflict or are somehow harmonized or complementary. Another objective is to illustrate the updates brought by digitalization as case object on Siemens as case subject. The paper is focused on value-based management particularities for digitalization products, services, solutions. The context of the paper is digitalization technology and its impact on business and society, digital transformation. The phenomenon is new to society in all and therefore both literature review and case studies are highly relevant. The article is a case study on a top European corporation, both leader in digitalization and excellent value-based management practitioner. The case study is exploratory and descriptive, searching for the connections between digitalization and value. It relies on secondary evidence about Siemens. The questions are how New Economy value patterns work in practice and how do they relate to classic value indicators, net present value of discounted cash flow or its equivalent Economic Value Added. The paper finds a connection between innovation lifecycle and investment approval or capital budgeting. The beginning of the project lifecycle involves investment in intangible assets, business models, an open network structure and is funded by venture capital. As the idea matures close to customer contract negotiation stages, the network structure turns into a project budgeted via program management and equity and debt. The findings show how so-called new capital budgeting methods, venture capital, are reconciled with classic value-based management using equity and debt and Economic Value-Added investment appraisal. Both funding methods have their logic and place in idea lifecycle at Siemens. The paper finds a match between the lean start-up method and early stages of digital offering lifecycle, and a complementarity between venture capital funding methods and equity and debt capital funding methods given by the innovation lifecycle.

Analysis of not Using the Multi-Year Contract Method in Directorate General of Islamic Education

The application of multi-year budgeting is the implementation of the medium-term expenditure framework approach. Furthermore, the multi-year budgeting is carried out through the procurement of goods and services called the Multi-Year Contract. Multi-year budgeting provides certainty for the continued funding of activities/projects. Although, an activity/project that naturally lasts more than one fiscal year but not all planners use multi-year budgeting. This study reveals the background behind the policy of not using the multi-year budgeting method by spending unit in the Directorate General of Islamic Education, Ministry of Religion. The method used in this study uses quantitative research using the Analytical Hierarchy Process (AHP) model. The results of the study indicate that the existence of laws and regulations regarding multi-year budgeting is the most important element as the main reason as the choice of multi-year budgeting compared with internal factors. The most important element of legislation is related to the absence or unclear rules. Meanwhile, the most important element of internal factors is the certainty of funding activities/projects.

SCIENTIFIC AND METHODICAL APPROACH TO BUDGET STRATEGIZING USING THE PROGRAM-TARGET METHOD

The article explores the functionality of the program-target budgeting method, taking into account the specifics of target programs. The latter should reflect the goals, timelines, and available financial resources and, in general, provide the solution to the problems of a specific target program. The main components in achieving a balance of interests of subjects of economic activity were substantiated.The key directions of evaluating the effectiveness of measures for implementation of budget programs, depending on the stage of their implementation — preliminary, intermediate and final — were formed. In part of such stages, methods for assessing the effectiveness of budget programs (cost-benefit analysis method, cost-efficiency analysis method, cost-effectiveness analysis method) were considered. It was proved that the feasibility of using budget programs is determined by a combination of qualitative and quantitative indicators for evaluating the effectiveness and efficiency, in particular from the standpoint of economic, social, expenditure indicators, volume indicators and performance indicators.The requirements to indicators for assessing the effectiveness of implementation of budget programs were formed. Particular attention is paid to a set of organizational and technical measures related to the proper formation, transformation and accounting of information. The necessity of diagnostics of the performance indicators of implementation of budget programs from the standpoint of the feasibility of conducting their constant monitoring is substantiated.The approach to budget strategizing based on the calculation of the integral indicator of the forecasted level of achievement of the goals of the budget program with visualization of the radar diagram of strategic alternatives was improved. The advantages of such a scientific and methodical approach to budget planning are as follows: firstly, the flexibility of the approach, because the number of indicators applied for achieving the goals of the budget program, can be changed if necessary; secondly, the simplicity of the calculations and the visibility of their results. It was proved that program-targeted budgeting is characterized by bi-aspectuality, on the one hand, as a special type of activity aimed at achieving the goals set by state authorities and realized on the basis of current legislation, and on the other hand, it is a way of implementation of government decisions in a practical plane.

Management Efficiency of Budgeting: Evidence from Public Universities in Vietnam

Budgeting is an important tool helping managers in planning and controlling during the operation of universities. Budgeting plays a vital role in controlling budgeting activities in the short-term and provides appropriate implementation plans to achieve strategic objectives. This study aims to evaluate the management effectiveness of budgeting activities in Vietnamese public universities. Data was collected from 53 public universities in Vietnam through questionnaire. After collecting, the data is cleansed and analyzed on SPSS software by tools such as: Frequency statistics, price statistics, average, comparing. The research results showed that: (1) The application of budgeting is comprehensive; that includes income and expenditure budget, enrollment budget, and teaching budget; (2) Monitoring and evaluation of budgeting activities are strictly implemented, (3) The main budgeting method is preparing general budgets for the entire university, and the other method is preparing budgets for each department (4) The main method of evaluating budgeting is comparing variances while variance analysis and finding underlying causes were not applied. This study proposes solutions to improve the process, content and quality of budgeting, thereby contributing to improving management efficiency in public universities in Vietnam.
 JEL Classification: M10, M40, M41.

Improving Financial Performance Using Capital Budgeting Method Towards Cleaner Eyewear Product: A Case Study of Nasho


 
 
 The purpose of this study was to know the factor that can be improved in the financial performance of Nasho. Nasho is a brand that focuses on offering products for eyeglass and helmet application that can be water, dew and dust repellent by utilizing the application of nanotechnology in the scope market of Bandung. However, to adapt the technology for Nasho is currently hampered by the limited capital to develop the technology itself. The company needs to manage the capital and minimize the cost to optimize the finance. The company needs to control the cost and expenses to avoid the high number of costs and expenses in terms of the development business stage. The research will use a qualitative approach by conducting interviews to Mr. Reza optics that will cooperate with Nasho to sell the product and use secondary data information from literature review, journal, books and primary data from financial history of Nasho and survey from the consumer of Nasho namely College student, Medical staff and Motorcycle riders and the components that are relevant to the conceptual framework. Survey used to get the consumer product and buying tendency information from Nasho’s consumer to validate the assumption of brand, price and buying intencity. Interview was conducted to get the suitable number of sales that are being used for cash flow forecasting scenario. The findings of this research is Nasho had low financial performance in the first two years of the business. After the evaluation, this can be improved by making a financial planning mix for short term and long term using the capital budgeting method in the form of three optimal scenarios of cash flow, Net Present Value (NPV), IRR and payback period that can be used as an optimal plan to run this business for the next five years.
 
 

Evaluasi Kelayakan Investasi Proyek Pembangunan Perumahan Green Terrace Ditinjau pada Aspek Keuangan

Indonesian population growth rate was quite high especially in regions jabodetabek (Jakarta, Bogor, Depok, Tangerang, Bekasi). The resulted in increased demand for homes. Green Terrace Housing Project located in the street Mukti, Jati Asih, Bekasi, which was completed in 2013, contributing to the increase in demand for homes. Project finance is an information that can help investors to identify the feasibility of a project. One of the tools used in the analysis financial was capital budgeting. With the calculation method using NPV, IRR, and PI. Researchers use secondary data from PT Ritma Panca Gemilang, in form of cash flows during the project within a period, from 2009 to 2013. Results of the study were reviewed on the financial aspects through the method of calculation of Net Present Value (NPV), Internal Rate of Return (IRR), and Profitability Index (PI). The Third calculation results showed good results, so the evaluation of capital budgeting Green Terrace housing development was feasible. The results of the study were reviewed through the financial aspects of capital budgeting methods bring out the Net Present Value (NPV) RP 7,286,398,008.25, Internal Rate of Return (IRR) with a 25% percentage, and Profitability Index (PI) 2,86. The calculation results indicate an ideal outcome, so the evaluation of capital budgeting of Green Terrace housing development was prope.