ABSTRACT
For organizations that exist in rapidly changing environments, decisions on strategic options will be required on a continual basis; hence the importance of ensuring that we have a good grasp of the issues that are discussed in this chapter. Consequently, the acceptability of a chosen strategy is often determined by using a range of analytical financial and non-financial tools. Accountants or financial analysts are usually very involved in strategic evaluation and selection because of their expertise in understanding the financial implications of the possible courses of action. Here the authors consider methods of investment appraisal, which usually forms part of the financial decision-making process when making a choice between differing strategic options. For example, Dwyer for a description of the method applied to tourism and hospitality and Mules and Dwyer and Dwyer et al, who applied the concept to sporting events.
