Which component of the business case evaluates the preferred option in terms of its financial implications?

The component of the business case that evaluates the preferred option in terms of its financial implications is the economic case. This part of the business case focuses specifically on assessing the costs, benefits, and overall financial viability of the preferred option. It establishes a detailed financial analysis, including return on investment, cost-benefit analysis, and long-term financial impact, which are essential to understand whether the option is financially sound and worth pursuing.

The economic case is critical because it helps stakeholders understand not just the numerical implications of a decision but also the value that the proposed options will bring to the organization over time. It ensures that the preferred option aligns with the financial goals and sustainability of the organization.

The strategic case primarily addresses the alignment of the project with the organization's strategy and objectives, rather than the financial assessment. The commercial case focuses on the procurement approach and market analysis to determine how the services or products will be sourced, while the management case discusses how the project will be delivered and managed effectively.