Which of the following is NOT a method for financially appraising a proposed investment in a business change project?

The choice identified not as a method for financially appraising a proposed investment in a business change project is indeed correct. CSF, which stands for Critical Success Factors, refers to the essential areas of activity that must be performed well for an organization to achieve its mission and objectives. While CSFs are crucial for understanding what is necessary for success in a project or business change, they do not provide a financial appraisal.

In contrast, NPV (Net Present Value), IRR (Internal Rate of Return), and ROI (Return on Investment) are all established financial metrics used to evaluate the economic viability of investment projects:

• NPV calculates the expected monetary gain by discounting future cash flows to their present value and subtracting the initial investment. A positive NPV suggests the investment is worthwhile.
• IRR represents the discount rate at which the net present value of an investment is zero. It helps in assessing the profitability of potential investments.
• ROI measures the return on an investment relative to its cost, expressed as a percentage. This metric helps stakeholders understand the efficiency of an investment.

Thus, while NPV, IRR, and ROI are essential tools for determining the financial performance of an investment, CSF serves a different purpose in ensuring the project's strategic success