The B case extends the analysis in the A case (UVA-F-1020) to the next level, where the executive must choose between two mutually exclusive plant-renovation projects. Net present value (NPV) and internal rate of return rank the projects differently, affording an opportunity to (IRR) discuss the classic crossover problem in capital investment analysis. Operational flexibility is a significant factor, permitting a discussion of the role of real options in investment analysis. The last element is politics as managers jockey for project approval. A student worksheet file is available for use with this case.