Consider a project which is expected to generate the following stream of unlevered free cash flow over the next three years:

End of year $123$

$($$millions$)9782,0003,000$

The project currently has $$2,500$ million in bank debt which is to be fully repaid $($in one lump sum$)$ at the end of year $3.$ T

he cost of equity is $10\%$ per annum, the cost of debt is $5\%$ per annum and the corporate tax rate is $30\%.$

Use the FCFE model to determine the current equity value of the project $?$

Does it make sense to use this model in this case $?$