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Suppose Alcatel-Lucent has an equity cost of capital of 10.1% , market capitalization of $10.35 billion, and an enterprise value of $15 billion. Suppose Alcatel-Lucent's

Suppose Alcatel-Lucent has an equity cost of capital of 10.1%, market capitalization of $10.35 billion, and an enterprise value of $15 billion. Suppose Alcatel-Lucent's debt cost of capital is 5.8%and its marginal tax rate is 38%.

a. Alcatel-Lucent's WACC is

(Round to two decimal places.)

b. The NPV of the project is

(Round to two decimal places.)

c. The debt capacity of the project in part (b) is as follows:

Year: 0 Debt capacity is _________

Year 1 Debt capacity is____________

Year2 Debt capacity is ____________

Year3 Debt capacity is___________

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