Suppose a$.$ What is the free cash flow to equity for this project?

The free cash flow to equity for this project is: $($Round all answers to two decimal places. Use a minus sign to indicate a negative number.$)$

$$

$$Alcatel

$-$

Lucent has an equity cost of capital of

$9\mathrm{.}3$

$\%$

$$

$,$

$$market capitalization of $

$12\mathrm{.}80$

billion

$,$

$$and an enterprise value of $

$16$

$$billion$.$ Assume

$$

$$Alcatel

$-$

Lucent's debt cost of capital is

$5\mathrm{.}6$

$\%$

$$

$,$

$$its marginal tax rate is

$32$

$\%$

$$

$,$

$$the WACC is

$8\mathrm{.}20$

$\%$

$$

$,$

$$and it maintains a constant

$$

$$debt

$-$

equity ratio. The firm has a project with average risk. Expected free cash

$$

$$flow$,$ debt

$$

$$capacity$,$ and interest payments are shown in the

$$

$$table: LOADING....

a

$.$

$$What is the free cash flow to equity for this

$$

$$project$?$

b

$.$

$$What is its NPV computed using the FTE

$$

$$method$?$ How does it compare with the NPV based on the WACC

$$

$$method$?$