PC shopping network may upgrade its modem pool. It last upgraded 2 years ago when it spent 115 million on equipment with an assumed life of 5 years and assumes salvage value of $15 million for tax purposes the firm uses straight light depreciation. The old equipment can me sold today for $80 million. A new modem pool can be installed today for $150 million, t his will have a three year life and will be deprecated to 0 using straight line depreciation. The new equipment will enable the firm to increase sales by $25 million per year and decrease operating cost by $10 million per year. At the end of 3 years the new equipment will be worthless. Assume the firms tax rate is 35% and the discount rate for projects of this sort is 10%. A. what is the net cash flow at time zero if the old equipment is replaced? b. what are the incremental cash flows in years one, two, and three? c. what are the NPV and IRR of the replacement project