The Landers Corporation needs to raise $1.00 milion of debt on a 20-yoar issue. If t places the bonds privately, the interest rate will be 10 percent. Thirty thousand dollars in out-of-pocket costs will be incurred. For a public issue, the interest rate will be 9 percent, and the on the debt is paid semiannually, and the debt will be outstanding for the full 20-year period, at which time it will be repaid Use Ascendix 8 and Acendis D for an approximate answer but calculate your final answer using the formula and financial calculator methods underwniting spread will be 2 percent. There wil be $100,000 in out-of-pocket costs. Assume inberest a For each plan, compare the net a ount of funds initially available nn w the present value of future payments of interest and prnpal to determinent present Asu ete stated discount rate is 12 percent annually. Use 6.00 percent semiannually throughout the analysis. (Disregard taxes.) (Assume the $1.00 million needed includes the underwniting costs. Input your present value of future payments answers as negative values. Do not round intermediate calculations and round your answers to 2 decimal places) Private Placement Public Issue Net amount to Landers Present value of future payments Net present value b. Which plan offers the higher net present value? Private placement Public issue