It can be done but only if the return value when the node does exist is the string value of the node, not the node itself. The XPath
substring(concat("N/A", /foo/baz), 4 * number(boolean(/foo/baz)))
will return the string value of the baz
element if it exists, otherwise the string "N/A".
To generalize the approach:
substring(concat($null-value, $node),
(string-length($null-value) + 1) * number(boolean($node)))
where $null-value
is the null value string and $node
the expression to select the node. Note that if $node
evaluates to a node-set that contains more than one node, the string value of the first node is used.