Aligning projects with the strategic goals of the organization is crucial for project success. Today's economic climate is unprecedented due to rapid changes in technology, global competition, and financial uncertainty. Ensuring a strong link between the strategic plan and projects is a difficult task that demands constant attention from top and middle management.

List and explain the stages involved in project selection.

1.2. For most managers financial models are the preferred method to evaluate projects. These models are appropriate when there is a high level of confidence associated with estimates of future cash flows.

Discuss the THREE (3) main financial methods used for project selection.