Suppose Alcatel-Lucent has an equity cost of capital of 9.4%, market capitalization of $10.80 billion, and an enterprise value of $15 billion. Assume Alcatel-Lucent's debt cost of capital is 6.2%, its marginal tax rate is 34%, the WACC is 7.91%, 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:

Year	0	1	2	3
FCF ($million)	-100	54	102	65
D = d x VL	53.02	42.10	16.87	0.00
Interest	0.00	3.29	2.61	1.05

a. What is the free cash flow to equity for this project?

The free cash flow to equity for this project is: (Round all answers to two decimal places. Use a minus sign to indicate a negative number.)

Year	0	1	2	3
FCFE ($million)	____	____	____	____

b. What is its NPV computed using the FTE method? How does it compare with the NPV based on the WACC method?

NPV: ___