PC Shopping Network may upgrade lts modem pool. it last upgraded 2 years ago, when it spent $110 mililion on equipment with an assumed life of 5 years and an assumed salvage value of $20 million for tax purposes. The firm uses straight-ilne depreciation. The old equipment can be sold today for $80 million. A new modem pool can be installed today for $150 million. This will have a 3-year life and will be depreclated to zero using straight-line depreciation. The new equipment will enable the firm to increase sales by $24 million per year and decrease operating costs by $12 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 8%. a. What is the net cash flow at time O 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 declmal places) What at th nt sh ows in yers 1 2 ane 37 (Ds not round inc. Entar your anawerin ilion rounded to 2 decimal places. Enter the IRR as a percent rounded to 2 decimal places) NPV 7 of 15 BlE Next >