Providence industries has an outstanding debenture of $25 million that was issued when flotation costs could be expensed immediately it carries a coupon rate of 10 percent and has 15 years to maturity Currently, simllar risk bonds are yielding 9 percent over a 15 -year period, and Providence is wondering if a refunding would be economically sound. The existing debenture has a call premium of 5 percent at present it is estimated that a new issue would require underwriting costs of $470,000 and other costs of $80,000. No overlap period would be required. Providence Industries has a tax rate of 25 percent. Its cost of capital is 16 percent a-1. Compute the discount rate (Round the final answer to 2 decimal places.) Discount rate % 0-2. Calculate the present value of total outflows. (Round "PV Factor" to 4 decimal places. Do not round intermediate calculations. Round the final onswer to nearest whole dollar.) Total outtiows $ A-3. Calculate the present value of total inflows. (Round "PV Factor" to 4 decimal places, Do not round intermediate calculations. Round the final answer to nearest whole dollar.) Totel inflows $ Q-4. Calcutate the net present value (Round "PV Factor" to 4 decimal places. Do not round intermedlate calculations. Round the final answer to nearest whole doller.) Net present value $ a.5. Should Providence industries refund the old issue