PC Shopping Network may upgrade its modem pool. lt last upgraded 2 years ago. when it spent $145 million on equipment with an assumed life of 5 years and an assumed salvage value ot$15 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 3year life and will be depreciated to zero using straightline depreciation. The new equipment will enable the rm to increase sales by $2? million per year and decrease operating costs by $14 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 ofthis sort is 8%. Required: a. What is the net cash flow at time 0 if the old equipment is replaced? {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? [Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal placesJ c. What is the NPV of the replacement project? (Do not round intermediate calculations. Enter the NPV in millions rounded to 2 decimal places.) d. What is the IRR ofthe replacement project? [Do not round intermediate calculations. Enter the IRR as a percent rounded to 2 decimal places.) Emma-sham E Incremental cash flow d million per year %