Capital budgeting is the process of making decisions about long-term investment projects. The subject of this thesis is the assessment of the profitability of investment in the project by capital budgeting methods. The investment project describes the long-term investments of the company, which represent the possibility of realization only after passing the assessment of financial efficiency, which must be good enough to be accepted for the available budget of the company. The purpose of this thesis was to present an analysis of the profitability of the project investment with a payback period of five years ie. to make a calculation of the financial profitability of the project based on the selected company, Hotels Jadran d. d. In conjunction with the previous sentence, it is realized whether the project is acceptable / profitable or unacceptable / unprofitable for the company's business. The methods used in the paper are the analysis and synthesis of the profitability of the project investment (three different net cash flows) and quantitative data processing through financial decision criteria (net present value, internal rate of return and profitability index) over a period of five years. Based on the conducted research, it was concluded that cash flows A and C are profitable, while cash flow B and combination of cash flow BC are not unprofitable. The unprofitability of these flows is reflected in their negative net present value, internal profitability rate which is lower than the cost of capital and profitability index whose value is less than 1 and represents a loss of earnings of the company. On the other hand, for cash flows, cash flow A will be chosen because it achieves a higher net present value, a higher internal profitability rate and a higher value of the profitability index, which increases the value of the company and achieves higher net profit of the company.