PC Shopping Network may upgrade its modem pool. It last upgraded 1 year ago, when it spent $123 million on equipment with an assumed life of 4 years and an assumed salvage value of $27 million for tax purposes. The firm uses straight-line depreciation. The old equipment can be sold today for $86 million. A new modem pool can be installed today for $140 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 $16 million per year and decrease operating costs by $9 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%.(Enter your answers in millions. For example, an answer of $13,000,000 should be entered as 13. Use minus sign to enter cash outflows, if any.)

a.What is the net cash flow at time 0 if the old equipment is replaced?(Round your answer to 2 decimal places.)The net cash flow at time 0$million

b.What is the incremental cash flow in year 1?(Round your answer to3decimal places.)The incremental cash flow in year 1$million

What is the incremental cash flow in year 2?(Round your answer to3decimal places.)The incremental cash flow in year 2$million

What is the incremental cash flow in year 3?(Round your answer to3decimal places.)The incremental cash flow in year 3$million

c.What is the NPV of the replacement project?(Round your answer to 2 decimal places.)NPV$million

What is the IRR of the replacement project?(Round your answer to 2 decimal places.)IRR%?

d.Now ignore straight-line depreciation and assume that both new and old equipment are in an asset class with a CCA rate of 30%. PC Shopping Network has other assets in this asset class. What is the NPV of the replacement project? For this part, assume that the new equipment will have a salvage value of $26 million at the end of 3 years.(Round your answer to 2 decimal places.)NPV$million?