Raymond Mining Corporation has 8.5 million shares of common stock outstanding and 135,000 quarterly bonds outstanding with face value $1000 and coupon rate of 7.5%. The common stock currently sells for $34 per share and has a beta of 1.25, and the bonds have 15 years to maturity and sell for 114 percent of the face value. The market risk premium is 7.5 percent, T-bills are yielding 4 percent (thus risk free rate is 4%), and Raymond Mining tax rate is 35%. Raymond Mining is considering an investment which will cost $2,590,000. The investment produces no cash flows for the first year. In the second year, the cash inflow is $580,000. This inflow will increase to $1,500,000 and then $2,000,000 for the following years before ceasing permanently (thus the project has in total 4 years). What is the Cost of Equity? What is the EANPV of a project that requires an initial investment of $42,000 and has revenues of $10,000 per year for 8 years? Assume the discount rate is 10 percent and the tax rate is zero.