Suppose Alcatel-Lucent has an equity cost of capital of 10.8%, market capitalization of $8.97 billion, and an enterprise value of $13 billion. Assume that Alcatel-Lucent's debt cost of capital is 5.6%, its marginal tax rate is 36%, the WACC is 8.5630%, 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 $184.68 million - $100 million $84.68 million. a. What is Alcatel-Lucent's unlevered cost of capital? b. What is the unlevered value of the project? . c. What are the interest tax shields from the project? What is their present value? d. Show that the APV of Alcatel-Lucent's project matches the value computed using the WACC method. a. What is Alcatel-Lucent's unlevered cost of capital? Alcatel-Lucent's unlevered cost of capital is %. (Round to four decimal places.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Year 0 1 2 3 FCF ($ million) -100 47 104 68 184.68 153.49 62.64 0.00 D=dxV 57.25 47.58 19.42 0.00 Print Done - I CC