PC Shopping Network may upgrade its modem pool. It last upgreded 2 years 0go, when it spent $135 million on equipment with an assumed ife 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 todoy for $180 million. This will have a 3 -year life and will be depreclated to zero using straight-line depreciation. The new equipment will enable the fitm to increase sales by $23 million per year and decrease operating costs by $11 million per yeat. 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 11%. Required: a. What is the net cash flow at time 0 if the old equipment is replaced? Note: Negotive amounts should be indicated by a minus sign. Do not round intermediate caiculations. Enter your answer in millions rounded to 2 decimal places. b. What are the incremental cash flows in years: Fi 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