New Jersey Waster Co. (NJWC) is considering whether to refund a $50 million, 14 percent coupon, 30-year bond issue that was sold 5 years ago. It is amortizing $3 million of flotation costs on the 14 percent bonds over the 30-year life of that issue. NJWCs investment bankers have indicated that the company could sell a new 25-year issue at an interest rate of 11.67 percent in todays market. A call premium of 14 percent would be required to retire the old bond, and floatation costs on the new issue would amount to $3 million. NJWCs marginal tax rate is 40 percent. The new bonds would be issued at the same time the old bonds were called.

What is the relevant refunding investment outlay?

What are the relevant annual interest savings for NJWC if refunding takes place?

What are the relevant annual flotation cost tax effects for NJWC if refunding takes place.

What is the NJWC bond refundings NPV?

Show work please