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 in order to copy the contents of the data table below into a spreadsheet.) Project A Project B Initial investment - $4,650,000 $1,554,000* Year Operating cash flows 1 $562,000 $388,000 2 935,000 388,000 3 1,352,000 388,000 4 2,220,000 388,000 5 3,396,000 388,000 *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 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.) A. A replacement project is simply an expansion decision in which all cash flows are the incremental cash flows. B. A replacement project is simply an expansion decision in which all cash flows from the old asset are zero. OC. An expansion project is simply a replacement decision in which all cash flows from the old asset are zero. D. An expansion project is simply a replacement decision in which all relevant cash flows are the incremental cash flows.