Question: A key difference between a replacement project analysis and an expansion project analysis is that the net present value (NPV) technique that is used to

A key difference between a replacement project analysis and an expansion project analysis is that the net present value (NPV) technique that is used to evaluate capital budgeting projects should only be used to evaluate expansion projects, whereas either the NPV technique or the internal rate of return (IRR) technique can be used to evaluate replacement projects.

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