Question: Need to understand how this gets put into excel, i struggle greatly with apply the work to spreadsheets P113 Replacement versus expansion cash ows Tesla

 Need to understand how this gets put into excel, i struggle

Need to understand how this gets put into excel, i struggle greatly with apply the work to spreadsheets

greatly with apply the work to spreadsheets P113 Replacement versus expansion cash

P113 Replacement versus expansion cash ows Tesla Systems has estimated the cash flows over the 5-year lives for two projects, A and B. These cash flows are summa- rized in the table below. Project A Project B Initial investment -$4,65 0,000 $1,550,000 Year Operating cash inows 1 $ 5 6 0,000 $380,000 2 925,000 380,000 3 1,350,000 380,000 4 2,225,000 3 80,000 5 3,400,000 380,000 a. If project A, which requires an initial investment of $4,650,000, is a replacement for project B and the $1,5 5 0,000 initial investment shown for project B is the after-tax cash inow expected from liquidating project B, what would be the net cash flows for this replacement decision? b. Instead, if project A is an expansion decision, What would be the net cash flows and how can it be viewed as a special form of a replacement decision? Explain

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