The following information applies to the next three questions: Jan Volk, financial manager of Green Sea Transport (GST), has been asked by her boss to review GST's outstanding debt issues for possible bond refunding. Five years ago GST issued $50,000,000 of 12%, 25-year debt. The issue, with semiannual coupons, is currently callable at a premium of 10% for each $1,000 par value bond. Flotation costs on this issue were 6%. Volk believes that GST could issue 20-year debt today with a coupon rate of 8%. The firm has placed many issues in the capital markets during the last 10 years, and its debt flotation costs are currently estimated to be 4% of the issue's value. GST's federal-plus-state tax rate is 40%. Help Volk conduct the refunding analysis by answering the following questions. What is the net after-tax cash outlay required to refund the old issue? 1) $4,040,000 2) $6,520,000 3) $5,200,000 4) $6,610,500 5) $6,200,000 What is the semiannual after-tax interest savings that would result from there funding? 1) $910,500 2) $780,000 3) $360,000 4) $620,000 5) $600,000 What is the NPV of refunding? 01) $11,176,397 2) $8,765,420 3) $9,378,653 4) $2,146,365 5) 10,687,356