After-tax cost of debt (par value) , systematic risk

Hello Sir
I have 2 questions….
1) I was doing a question in the BPP revision kit titled “FAQ” in the Cost of Capital Section. In requirement “A” (after tax cost of debt), the cash flow for the capital repayment in the answer is $100. Could you please tell me how that figure was arrived at?

2) Also the question mentioned systematic risk of debt being zero, and from what I’ve read otherwise, that is measured in beta factors, so I am a bit confused as to which calculation that would be involved in as one of requirements was to find beta.

The question is as follows:
FAQ is a profitable, listed manufacturing company, which is considering a project to diversify into the manufacture
of computer equipment. This would involve spending $220 million on a new production plant.
It is expected that FAQ will continue to be financed by 60% debt and 40% equity. The debt consists of 10% loan
notes, redeemable at par after 10 years with a current market value of $90. Any new debt is expected to have the
same cost of capital.
FAQ pays tax at a rate of 30% and its ordinary shares are currently trading at 453c. The equity beta of FAQ is
estimated to be 1.21. The systematic risk of debt may be assumed to be zero. The risk free rate is 6.75% and
market return 12.5%.
The estimated equity beta of the main competitor in the same industry as the new proposed plant is 1.4, and the
competitor’s capital gearing is 35% equity and 65% debt by book values.

RTF
a) Calculate the after-tax cost of debt of FAQ’s loan notes.
(3 marks)
(b) Calculate a project-specific discount rate for the proposed investment.
(9 marks)
(c) Discuss the problems that may be encountered in applying this discount rate to the proposed investment.
(8 marks)
(d) Explain briefly what is meant by pecking order theory.

Your assistance would be greatly appreciated.