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The Bowman Corporation has a bond obligation of $10 millionoutstanding, which it is considering refunding. Though the bondswere initially issued at 11 percent, the interest rates on similarissues have declined to 10.0 percent. The bonds were originallyissued for 20 years and have 10 years remaining. The new issuewould be for 10 years. There is a call premium of 7 percent on theold issue. The underwriting cost on the new $10,000,000 issue is$400,000, and the underwriting cost on the old issue was $290,000.The company is in a 35 percent tax bracket, and it will use an 9percent discount rate (rounded aftertax cost of debt) to analyzethe refunding decision. Use Appendix D for an approximate answerbut calculate your final answer using the formula and financialcalculator methods.a. Calculate the present value of totaloutflows.b. Calculate the present value of totalinflows.c. Calculate the net present value.