Suppose$$ Alcatel$-$Lucent has an equity cost of capital of $9\mathrm{.}3\%,$ market capitalization of $ $12\mathrm{.}80$billion$,$ and an enterprise value of $ $16$ billion. Assume$$ 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?