Delta Corporation has a $30 million bond obligation outstanding, which it is considering refunding. Though the bonds were initially issued at 7 percent, the interest rates on similar issues have declined to 4.6 percent. The bonds were originally issued for 10 years and have 6 years remaining. The new issue would be for 6 years. There is a 5 percent call premium on the old issue. The underwriting cost on the new $30,000,000 issue is $600,000, and the underwriting cost on the old issue was $750,000. The company is in a 25 percent tax bracket, and it will allow an overlap period of one month. Treasury bills currently yield 1 percent. Use Appendix D. (Round "PV factor" to 3 decimal places. Do not round intermediate calculations. Enter the answers in whole dollars, not in millions. Round the final answers to nearest whole dollar.)

a. Calculate the present value of total outflows.

Total outflows $ 7480446 Numeric ResponseEdit Unavailable. 7480446 incorrect.

b. Calculate the present value of total inflows.

Total inflows $ 8670955 Numeric ResponseEdit Unavailable. 8670955 incorrect.

c. Calculate the net present value.

Net present value $ 1190509