a. Common stock was purchased at a cost of $98,000. The stock paid no dividends, but it was sold for $160,000 at the end of three b. Preferred stock was purchased at its par value of $53.000. The stock paid a 6% dividend (based on par value) each year for three years. years. At the end of three years, the stock was sold for $39,000 c. Bonds were purchased at a cost of $70,000. The bonds paid annual interest of $1,500. After three years, the bonds were sold for $86,000 The securities were all sold at the end of three years so that Linda would have funds available to open a new business venture The broker stated that the investments had eamed more than a 11% return, and he gave Linda the following computations to support his statement: ($78040+3 years )$221000=11779 Click here fo view Emibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using tables. Roquired: 1-a. Using o 1ras discount rate, compute the net-present value of each of the three invertments 1-b. On which investment(s) did Linda eamn a the rate of return? 2 Considering all threv investments together, did Linca earn a 11% rate of retum? 1 Linda wants to use the $285,000 proceeds (5160,000+$39,000+$86,000=$285,000) from tale of the securities to open a retail store under a 1hyear franchise contract. What minimum annual net cash intlow must the store generate for Linda to earn a 10kin returm over the thyear pertod