Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion Return to question PC Shopping Network may upgrade its modem pool. It last upgraded 2 years ago, when it spent $75 million on equipment with an assumed life of 5 years and an assumed salvage value of $10 million for tax purposes. The firm uses straight-line depreciation. The old equipment can be sold today for $80 million A new modem pool can be installed today for $180 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 $36 milion per year and decrease operating costs by $18 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 10% Required: a. What is the net cash flow at time of 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 () 1 (1) 2 (1) 3? (Do not round Intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) 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 of the replacement project? (Do not round intermediate calculations. Enter the IRR as a percent rounded to 2 decimal places.) Answer is not complete. (109-30) Net cash low Incremental cash milion million per INPV mili CHECK my work mode the shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question USPOSURE ya CURSUR YOUR Rycos, firm's tax rate is 30% and the discount rate for projects of this sort is 10% Required: a. What is the net cash flow at time of 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 ( 1 (4) 2.() 3? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) 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 of the replacement project? (Do not round Intermediate calculations. Enter the IRR as a percent rounded to 2 decimal places.) Answer is not complete. (109 30 milion Nel cash flow Incremental cash