PRINCE2F Business Case and Organizing Practice Question
You are the project manager for a PRINCE2 project to migrate a legacy IT system to a cloud platform. During the Initiating a Project process, you are preparing the Business Case. The Executive has asked you to include the investment appraisal. Which of the following should you include as part of the investment appraisal?
⚠ Common exam trap
The trap here is assuming that any detailed project information, such as quality criteria or risk lists, belongs in the investment appraisal, when it should focus on the comparison of options.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
A comparison of the costs and benefits of the project against the 'do nothing' option
The investment appraisal must compare the project's costs and benefits against the 'do nothing' option to justify the investment. In this scenario, the cloud migration project must demonstrate that the benefits, such as cost savings and agility, outweigh the costs and risks compared to maintaining the legacy system.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
A comparison of the costs and benefits of the project against the 'do nothing' option
Why this is correct
The investment appraisal in the Business Case must compare the costs and benefits of the project against the 'do nothing' or 'business as usual' option. In this cloud migration project, you need to show why migrating is preferable to keeping the legacy system, including factors like reduced maintenance costs and improved scalability. This comparison is a key part of justifying the investment.
- ✗
A detailed breakdown of the project's quality criteria for each product
Why it's wrong here
Quality criteria are defined in the product descriptions and the quality management strategy, not in the investment appraisal. While quality affects costs and benefits, the investment appraisal focuses on financial and non-financial justification, such as return on investment. Including detailed quality criteria would be inappropriate and would not satisfy the requirement for an investment appraisal.
- ✗
A list of all project risks and their owners
Why it's wrong here
Risks are summarized in the Business Case, but the investment appraisal is specifically about the financial and non-financial evaluation of the project's viability. A detailed risk list with owners belongs in the Risk Register and the Risk Management Strategy. The investment appraisal may reference major risks, but it does not include a comprehensive list, as that would duplicate other documents.
- ✗
A schedule of all project board meetings and decision points
Why it's wrong here
The schedule of project board meetings is part of the project's communication management strategy or the project plan, not the investment appraisal. The investment appraisal is concerned with the costs, benefits, and viability of the project. Including meeting schedules would not provide the financial justification needed and is not a component of the investment appraisal in PRINCE2.
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Written and reviewed by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
Last reviewed September 2026 · checked against the official PeopleCert exam blueprint
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