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Check my work PC Shopping Network may upgrade its modem pool. It last upgraded 2 years ago, when it spent $ 1 1 0 million

Check my work
PC Shopping Network may upgrade its modem pool. It last upgraded 2 years ago, when it spent $110 million on equipment with an assumed life of 5 years and an assumed salvage value of $20 million for tax purposes. The firm uses straight-line depreciation. The old equipment can be sold today for $80 million. A new modem pool can be installed today for $150 million. This will have a 3-year life and will be depreciated to zero using straight-line depreciation. The new equipment will enable the firm to increase sales by $24 million per year and decrease operating costs by $12 million per year. At the end of 3 years, the new equipment will be worthless. Assume the firm's tax rate is 30% and the discount rate for projects of this sort is 8%.
Required:
a. What is the net cash flow at time 0 if the old equipment is replaced?
Note: Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.
b. What are the incremental cash flows in years: (i)1; (ii)2; (iii)3?
Note: Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.
c. What is the NPV of the replacement project?
Note: Do not round intermediate calculations. Enter the NPV in millions rounded to 2 decimal places.
d. What is the IRR of the replacement project?
Note: Do not round intermediate calculations. Enter the IRR as a percent rounded to 2 decimal places.
\table[[a. Net cash flow,,million],[b. Incremental cash flow,,million per year],[c. NPV,,million],[d. IRR,,%
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