Mbullet Technologiesis considering whether or not to refund a $225 million, 13% coupon, 30 year bond issue that was sold 5 years ago. It is amortizing $6 million of flotation costs on the 13% bonds over the issuer's 30 year life. Muller's investment banks have indicated that the company could sell a new 25 year issue at an interest rate of 10% in today's market. Neither they or Mullet's management anticipate that interest rates will fall below 10% any time soon, but there is a chance that rates will increase. A call premium of 13% would be required to retire the old bonds, and floatatiin costs on the new issue would amount to $4 million. Mullet's marginal federal-plus-state tax rate is 40%. The new bonds would be issued 1 month before the old bonds are called, with the proceeds being invested in short term government securities returning 6% annually dur8the interim period. A. Conduct a complete bond refunding analysis. What is the bond refunding 's NPV? Do not round intermediate calculations. Round your answer to the nearest cent. $___________

B. What factors would influence Mullet's decision to refund now rather than later?_________________________________