Company XYZ issued a callable bond with a face value of $20 million, a maturity of 15 years, and an 8% coupon rate. Three years later, the company is considering refunding the callable bond due to favorable market conditions. The callable bond has a call premium of 5%. The company plans to issue a new debt with a coupon rate of 5%, a maturity of 10 years, and a face value of $20 million. The underwriting costs are not considered to this decision to simplify the calculations. Assume a tax rate of 30%. 

Calculate the Net Present Value (NPV) to determine the financial viability of the refunding decision.

The market discount rate is 4%