Use the information for the question(s)below.
Omicron Industries' Market Value Balance Sheet ($ Millions)
and Cost of Capital 
Omicron Industries' New Project Free Cash Flows (Millions) 
Assume that this new project is of average risk for Omicron and that the firm wants to hold constant its debt to equity ratio.
-Calculate the debt capacity of Omicron's new project for years 0,1,and 2.
Definitions:
Cash Paid Out
Money that is spent or disbursed by a business, often related to operating expenses, purchasing assets, or repaying liabilities.
Current Calendar Year
The period from January 1 to December 31 of the present year, used for financial and administrative purposes.
Selling Bonds at a Discount
This occurs when bonds are sold for less than their face value, often due to the prevailing interest rates being higher than the bond's coupon rate.
Cost of Borrowing
The total amount that a borrower pays to secure and use borrowed funds, including interest and any associated fees.
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