Press Corp. has been offered an opportunity to replace its current long-term debt structure with a new long-term facility - both of which requires a full repayment at the end of the term. The current long-term debt balance is $80,000,000 at 11% per annum and has 15 years remaining. Early debt retirement fees amount to 7% of the outstanding balance and is capital in nature.

The new facility is for $80,000,000 at 8.0% for 15 years and has a one-time 15.0% transaction cost attached to it. Transaction fees are deductible for tax purposes over the next two years. Press Corp.s corporate tax rate is 30%.

You were also advised that it would take 45 days from the time of receiving the new facility funding to repay the old debt in full. Short term deposit rates earn 1.75% per annum. Prepare a cost benefit analysis to determine if the offer should be accepted.