I have a CAD drawing with no world file or projection associated. I do have grid lines included in the drawing. I am using the spatial adjustment tool to relocate the drawing as when brough into Arc the coordinates are based on the CAD file (nonsensical in a geographic sense). The spatial adjustment tool offers three options for tranformations:
Affine
Similarity
Projective
Having read the docs it strikes me projective would be most appropriate (maintains shapes) but would like to know if this is suitable.