PLEASE ANSWER STEP BY STEP and not through excel. I need the work to be able to done on paper so I can understand the st

[answerhappygod]

PLEASE ANSWER STEP BY STEP and not through excel. I need the
work to be able to done on paper so I can understand the steps and
what to do properly. Thank you
The SSR Co., currently all-equity firm, is planning to build a
factory. The beta, systematic risk, of this project alone is 15%
less than they currently manage. The beta, currently, is 1.5. The
corporate tax rate the firm faces is 34%. The company has a target
debt-to-equity ratio of 3/7. The initial investment cost is $30
million and the expected operating after-tax cash flows are $10
million per year for five years. The risk-free rate is 3% and the
historical market risk premium of 8% is a reasonable estimate.
a. What is the all-equity value of this investment?
b. If the company finances it with a five-year non-amortizing
loan with 11% interest, should it accept the project (USE APV
approach)?
c. If the local government approaches the SSR Co. with an offer
to loan the needed amount in b at 8%, should the company accept
this offer?