This report delves into the intricacies of business decision-making, focusing on the application of capital budgeting methods to evaluate investment projects. The analysis centers on DDK Textile Company, comparing two project options using net present value (NPV) and payback period calculations. The report meticulously outlines the steps involved in calculating both metrics, providing a clear understanding of their significance in financial analysis. Furthermore, it explores various financial factors, such as financial ratios and return on investment, and non-financial factors, including government regulations, social trends, technological advancements, and environmental considerations, all of which influence business decisions. The conclusion emphasizes the importance of a comprehensive approach to financial decision-making, highlighting the need to consider a multitude of factors when evaluating potential investments. This report is a valuable resource for students seeking to understand the principles of financial analysis and decision-making.