Expansion versus replacement cash flowsTesla 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.(

	Project A	Project B
Initial investment	$4,646,000	$1,545,000*
Year	Operating cash flows
1	$564,000	$385,000
2	932,000	385,000
3	1,358,000	385,000
4	2,226,000	385,000
5	3,401,000	385,000

*After-tax cash inflow expected from liquidation.

a. If Project A, which requires an initial investment of $4,646,000, is a replacement for Project B and the $1,545,000 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?

b. How can an expansion decision such as project A be viewed as a special form of a replacement decision? Explain.

a. Calculate the relevant cash flows for this replacement decision:(Round to the nearest dollar.)