PC Shopping Network may upgrade its modem pool. It last upgraded 2 years ago, when it spent $135 million on equipment with an assumed life of 5 years and an assumed salvage value of $30 million for tax purposes. The firm uses straight line depreciation. The old equipment can be sold today for $100 million. A new modem pool can be installed today for $180 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 $23 million per year and decrease operating costs by $11 million per year. At the end of 3 years, the new equipment will be worthless. Assume the firm's tax rate is 35% and the discount rate for projects of this sort is 11%. A. what is the net cash flow at time 0 if the old equipment is replaced? B. What are the incremental cash flows in years 1,2, and 3? C. what are the NPV and IRR of the replacement projects?