A key difference between a replacement project analysis and an expansion project analysis is that only the expansion project uses the net present value (NPV) method for project evaluation.

Question

Quizplus · Accepted Answer

This statement is incorrect. Both replacement and expansion project analyses can use the net present value (NPV) method for project evaluation. The method used for project evaluation depends on the specific circumstances and goals of the project.

A Key Difference Between a Replacement Project Analysis and an Expansion