请问这道题是expansion还是replacement，如何区分?

问题如下：

Company M has invested $20 million in fixed capital and another $5 million in working capital in a ten-year project. The equipment will be depreciated straight-line to zero over five years. It will generate additional annual revenues of $1.5 million and reduce annual cash operating expenses of $0.5 million. After ten years, the equipment will be sold for $3 million. The tax rate and the required rate of return are 25% and 10% respectively. What are the after-tax operating cash flow for Years 1–5 and 6–10 respectively?

选项：

$2.5 million and $1.5 million.

$2.5 million and $1.2 million

$2.3 million and $1.2 million

解释：

A is correct.

考点：Cash Flow Projections: Expansion Project

解析：Depreciation_(1–5) = 20/5 = $4 million.

OCF_(1-5) = ( ΔS –ΔC)(1 – T) + ΔD*T = [1.5 – (– 0.5)](1 – 0.25) + 4*0.25 = $2.5 million

OCF_(6-10) = (ΔS – ΔC – ΔD)(1 – T) + ΔD= [1.5 – (– 0.5) – 0](1 – 0.25) + 0 = $1.5 million