$[$Question $(1)-(9)$ are sharing the same information$]$

CougarCorp plans to develop new fuel cells in the Dallas area. To start this new project, CougarCorp needs to spend $$980M$ today. Once adopted, the project will earn a free cash flow of $$78M$ in the first year, which is expected to grow at an annual rate of $2\mathrm{.}5\%$ forever. While this project has identical operating risk characteristics compared to CougarCorp's existing projects, it differs in terms of financing structure:

At time $0,$ this project will be partially financed with a $1-$year maturity debt whose face value is $$900M.$ Assume that the interest rate on this debt is the same as CougarCorp's cost of debt.

After the debt matures at year $1,$ CougarCorp will not issue any more debt for this project so that it will be completely financed with equity from year $1.$