Expansion versus replacement cash flows Tesla Systems has estimated the cash flows over the 5-year lives for two projects, A and B. These cash flows are summarized in the following table. (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Project A Project B Initial investment - $4,650,000 $1,560,000* Year Operating cash flows $566,000 $383,000 928,000 383,000 1,346,000 383,000 2,227,000 383,000 3,397,000 383.000 *After-tax cash inflow expected from liquidation. a. Calculate the relevant cash flows for this replacement decision: (Round to the nearest dollar.) Relevant Year Cash Flows O = A N A w A A a A b. How can an expansion decision such as project A be viewed as a special form of a replacement decision? Explain. (Select the best choice below.) O A. A replacement project is simply an expansion decision in which all cash flows from the old asset are zero. O B. An expansion project is simply a replacement decision in which all cash flows from the old asset are zero. O C. A replacement project is simply an expansion decision in which all cash flows are the incremental cash flows. O D. An expansion project is simply a replacement decision in which all relevant cash flows are the incremental cash flows