if you are writing the answers on a paper and you scan it after I would really appreciate it if the handwriting is clear enough to read, please show a step by step if needed, or give more explanation, thank you

Taber Inc. is considering a project that will result in initial after-tax cash savings of $2.1 million at the end of the first year and these savings will grow at a rate of 2% per yar indefinitely. The firm has a target debt - equity ratio of 0/80, a cost of equity of 11% and an after-tax cost of debt of 4.6%. The cost savings proposal is somewhat riskier than the usual project the firm undertakes; management uses the subjective approach and applies an adjustment factor of +3% to the cost of capital for such risky projects. Under what circumstances should the company take on the project