Suppose Alcatel-Lucent has an equity cost capital of 10.1%, market capitalization of $10.95 billion, and an enterprise value of $15.0 billion with a debt cost of capital of 5.9% and its marginal tax rate is 34%.

(a) What is Alcatel-Lucent's WACC?

(b) If Alcatel-Lucent maintains a constant debt-equity ratio, what is the value of a project with average and the following expected free cash flows?

Year---0----1----2---3 FCF(-100)--48--101---70.,

What is the NPV?

(c)If Alcatel-Lucent maintains its debt-equity ratio, what is the debt capacity of the project in part

(b)? Round all answer to two decimal places.