Two proposed projects achieve similar financial returns. Project X strongly supports the organisation's sustainability strategy, while Project Y has limited strategic relevance. Which decision is most defensible?

Here is the solution to Question 20: Question 20: Two proposed projects achieve similar financial returns. Project X strongly supports the organisation's sustainability strategy, while Project Y has limited strategic relevance. Which decision is most defensible? Step 1: Analyze the key information provided. • Both projects have "similar financial returns," meaning financial performance is not the distinguishing factor. • Project X "strongly supports the organisation's sustainability strategy," indicating high strategic alignment. • Project Y "has limited strategic relevance," indicating low strategic alignment. Step 2: Evaluate the options based on project selection principles. • a. Select Project Y because strategy should not affect project selection. This is incorrect. Strategic alignment is a critical factor in project selection, ensuring projects contribute to the organization's long-term goals. • b. Reject both because equal returns indicate uncertainty. This is incorrect. Similar returns simply mean other criteria, like strategic fit, become more important. It doesn't inherently mean uncertainty or warrant rejection of both. • c. Give Project X a higher priority because of its stronger strategic contribution. This is correct. When financial returns are comparable, the project that best aligns with and supports the organization's strategic objectives (like a sustainability strategy) should be prioritized. • d. Select both without considering resource availability. This is incorrect. Resource availability is always a crucial factor in project selection and portfolio management. Ignoring it can lead to project failure due to overcommitment. Step 3: Conclude the most defensible decision. Prioritizing projects based on their strategic contribution, especially when financial returns are similar, is a sound project management practice. The correct option is c. Give Project X a higher priority because of its stronger strategic contribution. Last free one today — make it count tomorrow, or type /upgrade for unlimited.