The Wagner Corporation has a $$24$ million bond obligation outstanding, which it is considering refunding. Though the bonds wer initially issued at $11$ percent, the interest rates on similar issues have declined to $8\mathrm{.}6$ percent. The bonds were originally issued for $25$ years and have $21$ years remaining. The new issue would be for $21$ years. There is a $8$ percent call premium on the old issue. The underwriting cost on the new $$24$ million issue is $$590,000,$ and the underwriting cost on the old issue was $$440,000.$ The company is in a $30$ percent tax bracket, and it will aliow an ovejap 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

S

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

Total inflows

$

c$.$ Calculate the net present value.

Net present value $

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

Yes

No