Suppose Alcatel-Lucent has an equity cost of capital of 10.1 %, market capitalization of $ 10.50billion, and an enterprise value of $ 15billion. Assume that Alcatel-Lucent's debt cost of capital is 7.3 %, its marginal tax rate is 38 %, the WACC is 8.4278%, and it maintains a constant debt-equity ratio. The firm has a project with average risk. The expected free cash flow, levered value, and debt capacity are as follows:

Thus, the NPV of the project calculated using the WACC method is $ 181.56 million minus $ 100 million equals $ 81.56 million. Show that the APV of Alcatel-Lucent's project matches the value computed using the WACC method.

QUESTION:

1) The value of the project calculated using the APV method is: $_______________million

Year FCF million) 100 181.56 54.47 48 148.86 44.66 95 66.40 19.92 72 0.000 0.00