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Zara Communication Corporation has a $100 million, 12 percent, annual coupon bond outstanding with 10 years remaining to maturity. The bond has a call provision that permits the company to retire the issue by calling in the bonds at an 8 percent call premium Investment bankers have assured Zara Corp. that it could issue an additional $100 million of new 10 percent coupon, 10-year bonds that pay interest annually. Flotation costs on the new refunding issue will amount to SA million. Predictions that long-term interest rate are unlikely to fall below 10 percent. Zara's marginal tax rate is 40 percent. (Hint call premium is not a tax-deductible expense). 34 of 40 Marks What is the NPV of the refunding? O A. $1,687,987 OB. $1,845,122 O C. -$1.754,523. OD. -$1,712,989 E None of the above. Unsure