Which factor is NOT typically assessed in investment appraisal?

In investment appraisal, the primary focus is on measuring and analyzing aspects that will influence the financial viability and potential success of the investment. The typical factors assessed include strategic alignment, feasibility of project completion, and potential financial returns.

The emotional impact on stakeholders, however, while an important consideration in broader organizational decision-making, is not a conventional metric within the financial analysis of an investment. Investment appraisal methodologies, such as Net Present Value (NPV), Internal Rate of Return (IRR), and payback period, prioritize tangible financial metrics and operational feasibility over subjective emotional responses.

Understanding strategic alignment ensures that the investment supports the organization's long-term goals. Assessing feasibility helps determine whether the project can realistically be completed within constraints like time and resources. Evaluating potential financial returns focuses on quantifying expected monetary benefits against the costs associated with the investment. In contrast, while stakeholder perspectives and sentiments can be influential in the implementation and success of the project, their emotional impact does not typically form part of the objective criteria used in investment appraisal processes.