The Wagner Corporation has a $$18$ million bond obligation outstanding, which it is considering refunding. Though the bonds were initially issued at $12$ percent, the interest rates on similar issues have declined to $9\mathrm{.}2$ percent. The bonds were originally issued for $20.$ years and have $16$ years remaining. The new issue would be for $16$ years. There is a $7$ percent call premium on the old issue. The underwriting cost on the new $$18$ million issue is $$530,000,$ and the underwriting cost on the old issue was $$380,000.$ The company is in a $35$ percent tax bracket, and it will allow an overlap period of one month $(1/12$ of the year$).$ Treasury bills currently yield $3$ percent. $($Do not round intermediate calculations. Enter the answers in whole dollars, not in millions. Round the final answers to nearest whole dollar.$)$

a$.$ Calculate the present value of total outflows.

Total outflows

b$.$ Calculate the present value of total inflows.

Total inflows

$$4280420$

c$.$ Calculate the net present value.

Net present value

$$2490420$

d$.$ Should the old issue be refunded with new debt?

Yes

$$ No