In $2018,$ National Utility issued $$60,000,000$ of $10\%,25-$year bonds at par. The current market rate on bonds with the same rating is $8\%.$ The bond contract will allow refunding of these bonds in $2019.$ Company officers have estimated the flotation costs $($legal$,$ printing, accounting, etc.$)$ of a $20-$year refunding bond issue to be $$1,500,000.$ The underwriting costs on a best$-$efforts basis will be $3$ percent of the issue price. The terms of the current bond contract require the payment of a $6\%$ call premium. Short term money market rates are $6\%,$ and a one$-$month overlap period is expected. Assuming that the utility firm$$s tax rate is $40\%,$ would a decision to refund the outstanding bonds be acceptable?