Solution for a,b,c,d (all apart of one question)

Consider a firm whose only asset is a plot of vacant land, and whose only liability is debt of $152 million due in one year I left vacant, the land will be worth $10.5 million in one year Alternatively, the firm can develop the land at an up-front cost of $10.8 million. The developed the land will be worth $36 million in one year. Suppose the risk-free interest rates 0.0%, assume all cash flows are risk-free, and there are no taxes 1. If the fim dhooses not to develop the land, what is the value of the firm's equity today? What is the value of the debt today? b. What is the NPV of developing the land? c. Suppose the firm aku 510 8 mlion from the equity Holders to develop the land. If the firm develops the land, what is the value of the firm's equity today? What is the value of the firm's debt today? d. Given your answer to part (c) would equity holders be willing to provide the 510.8 million needed to develop the land? a. If the firm chooses not to develop the land, what is the value of the firm's equity today? What is the value of the debt today? If the firm chooses not to deve op the land, the value of the equity is SH million (Round to two decimal places)