The Bowman Corporation has a $35 million bond obligation outstanding, which it is considering refunding. Though the bonds were initially issued at 9.0 percent, the interest rates on similar issues have declined to 8.0 percent. The bonds were originally issued at par, with a life of 20 years and have 15 years remaining. The new issue would be for 15 years. The call premium is 7.0 percent of the old issue. The underwriting cost on the new issue is $650,000, and the underwriting cost on the old issue was $500,000. The company is in a 30 percent tax bracket. There will be a 1 month overlap period where the company can invest any excess funds in the money market earning 4 percent per year.

Required:

Enter the present value for each the relevant cash flows in the table below.

• Enter the discount rate with two decimal places. (e.g. xx.xx%)
• Round all cash flow numbers to zero decimal places.
• Enter cash outflows as negative numbers.
• Enter 'Net' numbers for each cash flow. (e.g enter underwriting costs net of tax.)

DescriptionDiscount RateCall PremiumInterest SavingsUnderwriting (Net)Overlap (Net)Net Present Value