This essay examines the application of investment appraisal techniques, specifically Net Present Value (NPV) and payback period, to aid in business decision-making, focusing on project selection. The essay uses XYZ plc as a case study, evaluating the profitability of two projects, A and B. The NPV method is used to calculate the present value of cash flows, while the payback period determines the time required to recover the initial investment. The analysis reveals that project B is more favorable based on a higher NPV and a shorter payback period. The essay also addresses the impact of both financial and non-financial factors on investment decisions, emphasizing market trends, regulatory requirements, stakeholder relationships, and internal factors like staff morale and technology adoption, highlighting the importance of a holistic approach to decision-making. The essay concludes by recommending that XYZ plc invest in project B considering both financial and non-financial aspects. The essay also provides the advantages and disadvantages of both the techniques and how the advantages of NPV overcome the disadvantages of payback period.