The Lost Boxes Micro-Storage Corporation has a $50,000,000 12% bond outstanding that pays interest annually. The bond has 15 years left to maturity and because of a recent decline in interest rates, the company is considering refunding the bond. The existing bond has a call premium of 10%. A new issue would require $800,000 in flotation expenses and overlap period of 2 months is expected. The new bond would be for $50,000,000 and mature in 15 years and would bear interest of 9%, The company has an effective tax rate of 30% and can get a risk free rate of return of 3% on short term investments Required: Use NPV analysis to determine whether the company should refund this bond issue