Expansion or replace was posited as either one or the other. We could argue that they could be done concurrently but the one governing point was capital; in a world of a finite resource like capital, are we putting it to its highest and best use? When we consider expansion, this is where growth or opportunity is an opinion and the replacement is a fact; when we replace this machine, it will cost $x$ and save us $Y.$ Where the challenge comes in is what type of manager are you? Growth oriented or more conservative? There is no right or wrong answer. This leads to next week's discussion surrounding compensation where getting paid via stock options may influence your decision making as the higher the stock price goes, the more the options are worth. If a growth mindset gives managers the opportunity to cash in on the bargain element of the options, the more motivated they be