I posted this question already and you guys gave me the wrong answer. This time i got a smilar question with answer i have posted below which is 16-19 please do step by step.

74 (Interest on old bond) * $30,000,000 4.64 (Interest on new bond) * $30,000,000 ed $2,100,000 1,380,000 Savings per year $720,000 Aftertax savings per year $720,000 *(1-0.25) = $ 540,000 PV of annual aftertax interest savings $540,000/year @PVFA (n=6, %i = 3.45%) = $2,882,150 Summary Benefits 1. 2. 3. Costs $1,500,000 464,356 112,500 4. 2,882,150 PV of outflows $2,076,856 PV of inflows $2,882,150 NPV (Net present value) - $805,294