Question: Please help me with this question Check my work PC Shopping Network may upgrade its modern pool. It last upgraded 2 years ago, when it
Please help me with this question

Check my work PC Shopping Network may upgrade its modern pool. It last upgraded 2 years ago, when it spent $110 million on equipment with an assumed life of 5 years and an assumed salvage value of $20 million for tax purposes. The firm uses straight-line depreciation. The old equipment can be sold today for $80 million. A new modern pool can be installed today for $150 million. This will have a 3-year life and 1 will be depreciated to zero using straight-line depreciation. The new equipment will enable the rm to increase sales by $24 million points 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 30% and the discount rate for projects of this sort is 8%. Required: 3. 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 Skipped . . . . . . . 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 eBook 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 PM 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.) Net cash ow million Incremental cash ow NPV IRR million per year million % P-PP'P
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