a. compute the discount rate.

Discount rate. ?%

b. calculate the present value of total cash flows.

Total outflows. $?

c. calculate the present t value of total inflows.

Total inflows $?

d. calculate the net present value.

Net present value. $?

e. should the old issue be refunded and replaced with a debt isdue with a comparable maturity?

Yes or No

I need step by step explanations plus answers.

Daedulus Wings has had several successful years in the airline business and had received recognition from many quarters for flying higher, further, and cheaper than the competition. its financial state of affairs has not been as successful. The new vice president of finance is reviewing some debentures that carry fairly high semiannual payments. The vice-president notes, in particular, a bond issue that was issued 8 years ago with 15 years to maturity at an annual rate of 12 percent, payable semiannually. It has a call provision at a premium of 8 percent above par value. The bond issue has $50 million outstanding. Current long-term interest rates are 75 percent, payable on a sem-annual basis, and short-term rates are 3 percent. If the old bonds are called, the vice-president will require an overlap period of one-half a month. Wings has a tax rate of 35 percent. Underwriting and other financing expenses will be $1 million. a. Compute the discount rate. (Do not round intermediate calculations. Round the final answer to 4 decimal place.) Discount rate b. Calculate the present value of total outflows. (Round "PV Factor" to 5 decimal places. Enter the answers in whole dollars, not in millions. Do not round intermediate calculations. Round the final answer to nearest whole dollar.) Total outfilows c. Calculate the present value of total inflows. (Round "PV Factor" to 5 decimal places. Enter the answers in whole dollars, not in millions. Do not round intermediate calculations. Round the final answer to nearest whole dollar.) Total inflows d. Calculate the net present value. (Round "PV Factor" to 5 decimal places. Enter the answers in whole dollars, not in millions. Do not round intermediate calculations. Round the final answer to nearest whole dollar.) Net present value e. Should the old issue be refunded and replaced with a debt issue with a comparable maturity