I only need a response to part c. I completed part a and b.

Suppose Alcatel-Lucent has an equity cost of capital of 9.5%,market capitalization of $11.68billion, and an enterprise value of $ 16.0 billion with a debt cost of capital of 66.2%and its marginal tax rate is 32%

.a. What is Alcatel-Lucent's WACC?

b. If Alcatel-Lucent maintains a constant debt-equity ratio, what is the value of a project with average risk and the following expected free cashflows?

Year	0	1	2	3
FCF ($ million)	100	50	96	67

c. IfAlcatel-Lucent maintains its debt-equity ratio, what is the debt capacity of the project in part (b)?

a. What is Alcatel-Lucent's WACC? Alcatel-Lucent's WACC is 8.07%.(Round to two decimal places.)

b. If Alcatel-Lucent maintains a constant debt-equity ratio, what is the value of a project with average risk and the following expected free cashflows?

Year	0	1	2	3
FCF ($ million)	100	50	96	67

The NPV of the project is $81.55 million.(Round to two decimal places.)

c. If Alcatel-Lucent maintains its debt-equity ratio, what is the debt capacity of the project in part (b)?

The debt capacity of the project in part (b) is as follows:(Round to two decimal places.)

Year	0	1	2	3
Debt capacity	$49.02million	$	$	$0million