The Landers Corporation needs to ralse $$1\mathrm{.}20$ million of debt on a $5-$year issue. If it places the bonds privately, the interest rate will be $8$ percent. Twenty thousand dollars in out$-$of$-$pocket costs will be incurred. For a public Issue, the interest rate will be $8$ percent, and the underwriting spread will be $5$ percent. There will be $$100,000$ in out$-$of$-$pocket costs. Assume interest on the debt is paid semlannually, and the debt will be outstanding for the full $5-$year perlod, at which time it will be repaid. Use A ppendix $B$ and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods.

a$.$ For each plan, compare the net amount of funds Initially avallable$-$inflow$-$to the present value of future payments of interest and principal to determine net present value. Assume the stated discount rate is $12$ percent annually. Use $6\mathrm{.}00$ percent semiannually throughout the analysis. $($Disregard taxes.$)$

Note: Assume the $$1\mathrm{.}20$ million needed Includes the underwriting 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.

$\backslash$table$[[,$Private Placement,Public Issue$],[$Net amount to Landers,$$,1,180,000\mathrm{.}00,$$$,1,040,000\mathrm{.}00$