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 here e in order to copy the contents of the data table below into a spreadsheet.) Project A Project B Initial investment $4,647,000 $1,557,000* Year Operating cash flows 1 $550,000 $371,000 2 918,000 371,000 3 1,341,000 371,000 4 2,223,000 371,000 5 3,405,000 371,000 *After-tax cash inflow expected from liquidation. a. If Project A, which requires an initial investment of - $4,647,000, is a replacement for Project B and the $1,557,000 initial investment shown for Project B is the after-tax cash inflow expected from liquidating it, what would be the net cash flows for this replacement decision? a. Calculate the relevant cash flows for this replacement decision: (Round to the nearest dollar.) Relevant Year Cash Flows 0 $ 1 $ 2 $ 3 $ 4 $ 5 $ 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. An expansion project is simply a replacement decision in which all cash flows from the old asset are zero. OB. A replacement project is simply an expansion decision in which all cash flows are the incremental cash flows. OC. A replacement project is simply an expansion decision in which all cash flows from the old asset are zero. OD. An expansion project is simply a replacement decision in which all relevant cash flows are the incremental cash flows