The Wagner Corporation has a $23 million bond obligation outstanding. which it is consitering refunding, though the bonds were initially issued at 15 percent, the enterest rates on simialar ksues have declined to 121 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 8 percent call premium on the old issue. The underwriing cost on the new $23 million issue is $580,000. and the underwriting cost on the old issue was $430,000. The compary is in a 34 percent tax bracket, and it will allow an ovedap period of one month (U/2 of the year). Treasury bils currerity yield 5 percent. (Do not round intermediote colculations. Enter the answers in whole dollors, not in millions. Round the final answers to neerest whole dollar.) a. Calculate the present value of total outflows: Total outllows b. Calculate the present valise of total inflows. Total inflows c. Caiculate the net present value Net present value d. Should the old issue be refunded with new debt? Yes No