JAXBAX has two expansion options. It purchased an adjacent property last year, and the company can use that property to either build a brand new facility or renovate an existing building, but not both. The new facility would be more costly, but would also increase revenues more substantially for a longer period of time. Why should JAXBAX use NPV to evaluate this choice rather than IRR? O JAXBAX should not use NPV to evaluate this project IRR does not give correct answers when applied to long-lived projects O NPV is the only decision criteria that is appropriate to evaluate expansion opportunities IRR cannot be applied to choose between mutually-exclusive projects

JAXBAX has two expansion options. It purchased an adjacent property last year, and the company can use that property to either build a brand new facility or renovate an existing building, but not both. The new facility would be more costly, but would also increase revenues more substantially for a longer period of time. Why should JAXBAX use NPV to evaluate this choice rather than IRR? JAXBAX should not use NPV to evaluate this project IRR does not give correct answers when applied to long-fived projects NPV is the only decision criteria that is appropriate to evaluate expansion opportunities IRR cannot be applied to choose between mutually-exclusive projects JAXBAX has two expansion options. It purchased an adjacent property last year, and the company can use that property to either build a brand new facility or renovate an existing building, but not both. The new facility would be more costly, but would also increase revenues more substantially for a longer period of time. Why should JAXBAX use NPV to evaluate this choice rather than IRR? JAXBAX should not use NPV to evaluate this project IRR does not give correct answers when applied to long-lived projects NPV is the only decision criteria that is appropriate to evaluate expansion opportunities IRR cannot be applied to choose between mutually-exclusive projects