Q1) The Ziggy Trim and Cut Company can purchase equipment on sale for $4,300. The asset has a three-year life, will produce a cash flow of $1,200 in the first year, $2,000 in the second year, and $3,000 in the third year. The required rate of return is 12%. What is the projects NPV?

Q2) Albert's recently paid its annual dividend of $1.98 per share. At that time, the firm announced that all future dividends will be increased by 2.2 percent annually. What is the firm's cost of equity if the stock is currently selling for $28.40 a share?