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 - $4,650,000 Project B $1,550,000* Initial investment Operating cash flows Year $560,000 925,000 1,350,000 2,225,000 3,400,000 *After-tax cash inflow expected from liquidation. $380,000 380,000 380,000 380,000 380,000 3 4 a. If Project A, which requires an initial investment of - $4,650,000, is a replacement for Project B and the $1,550,000 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