PC Shopping Network may upgrade its modem pool. It last upgraded $2$

years ago, when it spent $$170$ 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 $$120$ million. A new modem pool can be installed today for $$210$

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 $$22$ 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 $30\%$ 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: 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.