Mullet Technologies is considering whether or not to refund a $150 million, 15% coupon, 30-year bond issue that was sold 5 years ago. it is amortizing $5 million of otation costs on the 15% bonds over the issue's 30-year life. Mullet's investment banks have indicated that the company could sell a new 25-year Issue at an interest rate of 9% in today's market Neither they nor Mullet's management anticipate that interest rates will fall below 9% any time soon, but there is a chance that rates will increase. A call premium of 13% would be required to retire the old bonds, and otation costs on the new Issue would amount to $6 million. Mullet's marginal federal-plus-state tax rate is 40%. The new bonds would be issued 1 month before the old bonds are called, with the proceeds being invested in short-term government securities returning 4% annually during the interim period. The data has been collected in the Microsoft Excel Online le below. Open the Spreadsheet and perform the required analysis to answer the question below. Open spreadsheet Conduct a complete bond refunding analysis. What is the bond refunding's NPV? Do not round intermediate calculations. Round your answer to the nearest dollar. s A B C Refunding Analysis IAWN Existing bond issue $150,000,000 Coupon rate on existing bond issue 15% Original maturity (in years) of existing bond issue 30 Years since existing bond issue sold 5 Original flotation cost on existing bond issue $5,000,000 Call premium (%) on existing bond issue 13% New bond issue $150,000,000 11 Coupon rate on new bond issue 9% Maturity (in years) of new bond issue 25 13 Flotation cost on new bond issue $6,000,000 14 15 Tax rate 40% 16 Interest rate on short-term government securities 4% 17 Number of months new bonds issued before old bonds called 1 18 19 Investment Outlay (After Taxes): Formulas 20 Call premium on old bond issue #N/A 21 Flotation cost on new bond issue #N/A 22 Tax savings on old bond issue flotation cost expense #N/A 23 Additional interest on old bond issue #N/A 24 Interest earned on short-term government securities #N/A 25 Total after-tax investment #N/A 26 27 Annual Flotation Cost Tax Effects: 28 Annual tax savings on new issue flotation costs #N/A 29 Annual lost tax savings from old issue flotation costs #N/A 30 Net flotation cost tax savings #N/A 31 32 Annual Interest Savings Due to Refunding: 33 Annual interest on old bond issue #N/A 34 Annual interest on new bond issue #N/A 35 Net interest savings #N/A 36 37 Annual cash flows (flotation cost and interest savings) #N/A 38 39 NPV of bond refunding decision #N/A 40