Need help with refunding analysis... cant get any of my calculations to match answers!!!

Ch 1 Assignment - Public and Private Financing: Initial Offerings, Seasoned Offerings, and Investment Banks Existing Bond New Bond Capital $624,000 $624,000 Flotation cost $3,120 $2,756 Maturity Years since issue Coupon 13.00% 7.80% Call premium 10.40% After-tax cost of new debt 5.07% The associate financial analyst on the finance team has done some preliminary refunding analysis and submitted the following calculations to you. Consider this as step 1 in the refunding analysis. Assume that the company pays no additional interest on the old issue and earns no interest on short-term investments Check if the calculations that the financial analyst submitted are correct and match your analysis. Check each box that has a correct value. If a value is incorrect, do not check the corresponding box Step 1: Determining the initial investment outlay Schedule of Cash Flows Before Tax Alter Tax Check if Correct Investment Outlay Cail premium on the old bond Flotation cost on new issue Immediate tax savings on old Rotation cost expense Total after-tax investment - $64,896 - $2,756 $42,182 -$2,256 $764 -$44,174 $2,154 Based on the information given to you, solve for step 2 (annual flotation cost tax effects) and step 3 (annual interest savings) by completing the following steps in the refunding analysis Step 21 Calculating the annual flotation cost tax effects 1. For tax purposes, the Rotation cost must be amortized over the life of the new bond, which is 8 years. Thus, the after-tax saving every year for the next 8 years will be 2. Tough Nut Corp., however, will no longer receive a tax deduction $108.52 In cost on the old issue $144.70 and will thus lose an after-tax benefit of $168.81 3. The net amortization tax effect on the rotation cost is the differed $120.58 the old and the new issue, which is per year for the next years. If the company issues new bonds, the tax savings from amortizing the Rotation costs will Step 3: Calculating the annual interest savings 1. The annual coupon payments on the old bonds were $81,120. Thus, the after-tax interest on the old issue is 2. The after-tax interest on the new bonds is 3. Thus, the net annual interest savings after tax will be At the final stage of the refunding analysis, you need to calculate the net present values (NPV) of the savings and costs and the NPV of the entire refunding operation Step 4: Calculating the NPV of the refunding Present value of amortised tax effects Present value of interest savings Net investment outlay Nay from rotunding