Premier Technology Group (PTG) is considering whether to refund an old issue of $40,000,000, 8.5 percent coupon (paid annually) twenty-year bonds that were sold eight years ago. A new issue of $50,000,000 twelve-year bonds can be sold with a coupon rate of 5.5 percent (paid annually). A call premium of 6.2 percent will be required to retire the old bonds and flotation costs of $2,000,000 will apply to the new issue. The tax rate applicable is 40 percent and PTG expects that there will be a one-month overlap during which any funds can be invested in Treasury bills yielding 2.5 percent. The additional $10,000,000 from the new bond issue could be invested in a twelve-year project with an expected net present value of $2,200,000. Should PTG refund the old issue of $40,000,000 bonds?