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Telsa Systems has estimated the cash flows over the 5 year lives for two projects A and B. These cash flows are summerized in the
Telsa Systems has estimated the cash flows over the 5 year lives for two projects A and B. These cash flows are summerized in the following table.
A. is project a which requires an initial investment of -4,655,000 is a replacement for project be in the 1,549,000 initial investment shown for project B is the after tax cash inflow expected from liquidating it what would be the net cash flow's for this replacement decision.
B. how can an expansion decisions such as project a be viewed as a special form of a replacement decision explain?
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