Return to question PC Shopping Network may upgrade its modem pool it last upgraded 2 years ago, when it spent $140 million on equipment with an assumed ite of 5 years and an assumed salvage value of $25 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 $210 million This will have a 3-year life and will be depreciated to zero using straight-line depreciation. The new equipment will enable the tim to increase sales by $30 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 30% and the discount rate for projects of this sort is 12% 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 ) 1002; 019 3? (Do not round Intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) e. What is the NPV of the replacement project? (Do not round intermediate calculations. Enter the NPV in millons 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 complete but not entirely correct. 2 $ b. $ Net cash flow Incremental cash flow NPV IRR 111.30 million 43503 million per your (7.321 min 8.15% $ d