Accounting assistance please and thank you

Linda Clark received $227,000 from her mothers estate. She placed the funds into the hands of a broker, who purchased the following securities on Lindas behalf:

a. Common stock was purchased at a cost of $97,000. The stock paid no dividends, but it was sold for $166,000 at the end of three years.

b. Preferred stock was purchased at its par value of $52,000. The stock paid a 4% dividend (based on par value) each year for three years. At the end of three years, the stock was sold for $37,000.

c. Bonds were purchased at a cost of $78,000. The bonds paid annual interest of $4,500. After three years, the bonds were sold for $83,000.

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 earned more than a 11% return, and he gave Linda the following computations to support his statement:

Common stock:
Gain on sale ($166,000 $97,000)	$ 69,000
Preferred stock:
Dividends paid (4% $52,000 3 years)	6,240
Loss on sale ($37,000 $52,000)	(15,000)
Bonds:
Interest paid ($4,500 3 years)	13,500
Gain on sale ($83,000 $78,000)	5,000
Net gain on all investments	$ 78,740

$78,740 3 years/$227,000 = 11.60 %

Required:

1-a. Using a 11% discount rate, compute the net present value of each of the three investments.

1-b. On which investment(s) did Linda earn a 11% rate of return?

2. Considering all three investments together, did Linda earn a 11% rate of return?

3. Linda wants to use the $286,000 proceeds ($166,000 + $37,000 + $83,000 = $286,000) from sale of the securities to open a retail store under a 9-year franchise contract. What minimum annual net cash inflow must the store generate for Linda to earn a 8% return over the 9-year period?

EXHIBIT 14B-1 Present Value of $1; 1 (1+r) n Periods 1 2 3 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 40 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 0.962 0.9520.943 0.935 0.926 0.917 0.909 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0.833 0.826 0.820 0.813 0.806 0.800 0.925 0.907 0.890 0.873 0.857 0.842 0.826 0.812 0.797 0.783 0.769 0.756 0.743 0.731 0.7180.706 0.694 0.683 0.672 0.661 0.650 0.640 0.889 0.864 0.840 0.816 0.794 0.772 0.751 0.731 0.712 0.712 0.693 0.675 0.658 0.641 0.624 0.609 0.593 0.579 0.564 0.551 0.537 0.524 0.512 0.855 0.823 0.792 0.763 0.735 0.708 0.683 0.659 0.659 0.636 0.636 0.613 0.592 0.572 0.552 0.534 0.516 0.499 0.482 0.467 0.451 0.437 0.423 0.410 0.822 0.784 0.747 0.713 0.681 0.650 0.621 0.593 0.567 0.543 0.519 0.497 0.476 | 0.456 0.437 0.419 0.402 0.386 0.370 0.355 0.341 0.328 0.790 0.746 0.705 0.6660.630 0.596 0.564 0.535 0.507 0.480 0.456 0.432 0.410 0.390 0.370 0.352 0.335 0.319 0.303 0.289 0.275 0.262 0.760 0.711 0.665 0.623 0.5830.547 0.513 0.482 0.452 0.425 0.400 0.376 0.354 0.333 0.314 0.296 0.279 0.263 0.2490.235 0.222 0.210 0.731 0.677 0.627 0.5820.540 0.502 0.467 0.434 0.434 0.404 | 0.376 0.351 0.327 0.305 0.285 0.266 0.249 0.233 0.218 0.204 0.204 0.191 0.179 0.168 0.703 0.645 0.592 0.544 0.500 0.460 0.424 0.391 0.361 0.333 0.308 0.284 0.263 0.243 0.225 0.209 0.1940.180 0.167 0.155 0.144 0.134 0.676 0.614 0.558 0.508 0.463 0.422 0.386 0.352 0.322 0.295 0.270 0.247 0.227 0.208 0.191 0.176 0.162 0.149 0.137 0.126 0.116 0.107 0.650 0.585 0.527 0.475 0.429 0.388 0.350 0.317 0.2870.261 0.237 0.215 0.1950.178 0.162 0.148 0.135 0.123 0.112 0.1030.094 0.086 0.625 0.557 0.497 0.444 0.397 0.356 0.319 0.286 0.257 0.231 0.208 0.187 0.168 0.152 0.137 0.124 0.112 0.1020.092 0.083 0.076 0.069 0.076 0.601 0.530 0.469 0.415 0.368 0.326 0.290 0.258 0.229 0.204 0.1820.163 0.145 0.130 0.116 0.104 0.093 0.084 0.075 0.068 0.061 0.055 0.577 0.505 0.442 0.388 0.340 0.299 0.263 0.232 0.232 0.205 0.205 0.181 0.160 0.141 0.125 0.111 0.099 0.088 0.078 0.069 0.062 0.055 0.049 0.044 0.555 0.481 0.417 0.362 0.315 0.275 0.239 0.209 0.183 0.160 0.140 0.123 0.108 0.095 0.084 0.074 | 0.065 0.057 0.051 0.045 0.040 0.035 0.534 0.458 0.394 0.339 0.2920.252 0.218 0.188 0.163 0.141 0.123 0.107 0.093 0.081 0.071 0.062 0.054 0.047 | 0.042 0.042 0.036 0.032 0.028 0.513 0.436 0.371 0.317 0.270 0.231 0.198 0.1700.146 0.125 0.108 0.093 0.080 0.069 0.060 0.052 0.045 0.039 0.034 0.030 0.026 0.023 0.494 0.416 0.350 0.296 0.250 0.212 0.180 0.153 0.130 0.111 0.095 0.081 0.069 0.059 0.051 0.044 0.038 0.032 0.028 0.024 0.021 0.018 0.475 0.396 0.331 0.277 0.232 0.194 0.164 0.138 0.116 0.098 0.083 0.070 0.060 0.051 0.043 0.037 0.031 0.027 0.023 0.0200.017 | 0.014 0.456 0.377 0.3120.258 0.215 0.178 0.149 0.124 0.104 0.087 0.073 0.061 0.051 0.043 0.037 0.031 0.026 0.022 0.019 0.0160.014 0.012 0.439 0.359 0.294 0.2420.199 0.164 0.135 0.112 0.093 0.077 0.064 0.053 0.044 0.037 0.031 0.026 0.022 0.018 | 0.015 0.013 0.0110.009 0.422 0.342 0.278 0.226 0.184 0.150 0.123 0.101 | 0.083 0.083 0.068 0.056 0.046 0.038 0.032 0.026 0.022 0.018 0.015 0.013 0.011 0.009 0.007 0.406 0.326 0.262 0.211 0.170 0.138 0.112 0.091 0.074 0.060 0.049 0.040 0.033 0.027 0.022 0.018 0.015 0.012 0.010 0.009 0.007 0.006 0.390 0.310 0.247 0.1970.158 0.126 0.1020.082 0.066 0.053 0.043 0.035 0.028 0.023 0.0190.015 0.013 0.010 0.008 0.007 0.006 0.005 0.375 0.295 0.233 0.184 0.146 0.116 0.092 0.074 0.059 0.047 0.038 0.030 0.024 0.0200.0160.013 0.010 0.0090.007 0.006 0.005 0.004 0.361 0.281 0.220 0.172 0.135 0.106 0.084 0.066 0.053 0.042 0.033 0.026 0.021 0.017 0.014 0.0110.009 0.007 0.006 0.005 0.004 0.003 0.347 0.268 0.207 0.161 0.125 0.098 0.076 0.060 0.047 0.037 0.029 0.023 0.018 0.014 0.0110.009 0.007 0.006 0.005 0.004 0.003 0.002 0.333 0.255 0.1960.150 0.116 0.090 0.069 0.054 0.042 0.033 0.026 0.020 | 0.0160.0120.010 0.008 0.006 0.005 0.004 0.003 0.002 0.002 0.321 0.243 0.185 0.141 0.107 0.082 0.063 0.048 0.037 0.029 0.022 0.017 0.014 0.011 0.008 0.006 0.005 0.0040.003 0.002 0.002 0.002 0.308 0.231 0.174 0.131 0.099 0.075 0.057 0.044 0.033 0.026 0.0200.015 0.0120.009 0.007 0.005 0.004 0.003 0.003 0.002 0.002 0.001 0.208 0.142 0.097 0.067 0.046 0.032 0.022 0.015 0.011 | 0.008 0.005 0.004 0.003 0.002 0.001 0.001 0.001 0.000 0.000 0.000 0.000 0.000 EXHIBIT 14B-2 Present Value of an Annuity of $1 in Arrears: 11[1-1(1+r)n] Periods 1 2 3 4 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 40 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0.833 0.826 0.820 0.813 0.806 0.800 1.886 1.859 1.833 1.808 1.783 1.759 1.736 | 1.713 1.690 1.668 1.647 1.626 1.605 1.585 | 1.566 1.547 | 1.528 | 1.509 1.492 1.474 | 1.457 1.474 1.457 | 1.440 2.775 2.723 2.673 2.624 2.577 2.531 | 2.487 2.487 2.444 | 2.402 2.361 2.322 2.283 2.246 2.210 2.174 2.140 2.106 2.074 2.042 2.011 1.981 1.952 3.630 3.546 | 3.465 3.387 3.312 3.240 3.170 3.102 3.037 2.974 | 2.914 | 2.855 2.798 2.743 2.690 2.639 2.589 2.540 2.494 | 2.448 2.404 2.362 4.452 4.329 4.212 4.100 3.993 3.890 3.791 | 3.696 3.605 3.696 3.605 3.517 3.433 3.352 3.274 3.1993.127 3.058 2.991 2.926 | 2.864 | 2.803 2.745 2.689 5.242 5.0764.917 4.767 4.623 4.4864.355 4.231 4.111 3.9983.889 3.784 3.685 3.589 3.498 3.410 3.326 3.245 3.167 3.092 3.020 3.020 2.951 6.002 5.786 5.582 5.389 5.206 5.033 4.8684.712 4.564 4.423 4.288 4.160 4.039 3.922 3.812 3.706 3.605 3.508 3.416 3.327 3.242 3.161 6.733 6.463 6.210 5.971 5.747 5.535 5.335 5.335 5.146 4.968 4.799 4.639 | 4.487 4.344 | 4.207 4.078 3.954 3.837 | 3.726 3.619 3.518 3.421 3.329 7.435 7.108 6.802 6.515 6.247 5.995 5.759 5.537 5.328 5.132 5.132 4.946 | 4.772 4.607 4.451 4.303 4.163 4.163 4.031 4.031 | 3.905 3.905 3.786 3.673 3.566 3.463 8.111 7.722 7.360 7.0246.710 6.418 6.145 5.889 5.650 5.426 5.216 5.019 4.833 4.659 4.494 4.339 4.1924.054 3.923 3.799 3.682 3.571 8.760 8.306 7.887 7.499 7.139 6.805 6.495 6.207 5.938 5.687 5.453 5.234 5.0294.8364.656 4.486 4.327 4.1774.035 3.902 3.776 3.656 9.385 8.863 8.384 7.943 7.536 7.161 | 6.814 6.4926.1945.918 5.660 5.421 5.1974.988 4.793 4.611 4.439 | 4.278 4.127 3.985 3.851 | 3.725 9.986 | 9.394 8.853 8.358 7.904 7.487 7.487 7.103 6.750 6.424 6.122 5.842 5.583 5.342 5.118 5.1184.910 4.715 4.533 4.362 4.203 4.053 3.912 3.780 10.563 9.899 9.295 8.745 8.244 7.786 7.3676.982 6.628 6.302 6.002 5.724 5.4685.229 5.008 4.802 4.611 4.432 4.265 4.108 3.962 3.824 11.118 | 10.380 9.712 9.108 8.559 8.061 7.6067.191 6.8116.462 6.142 5.847 5.575 5.324 5.092 4.8764.675 4.489 4.315 4.1534.001 3.859 11.652 10.838 10.106 9.447 8.851 8.313 7.824 7.379 6.9746.604 6.265 5.954 5.668 5.405 5.1624.938 4.730 4.536 4.357 4.189 4.033 3.887 12.166 | 11.274 10.477 9.763 9.122 8.544 8.022 7.549 7.1206.7296.373 6.047 7.1206.7296.373 6.047 5.749 5.475 5.222 4.990 4.775 4.576 4.391 4.219 4.059 4.059 3.910 12.659 11.690 10.828 10.0599.372 8.756 8.201 8.7568.201 7.702 7.250 6.840 6.467 | 6.128 5.8185.534 5.273 5.0334.812 4.608 4.419 4.243 | 4.080 3.928 13.134 | 12.085 | 11.158 10.336 9.604 8.950 8.950 8.365 8.365 7.839 7.839 7.366 7.3666.938 6.550 6.198 5.8775.584 5.316 5.070 4.843 4.635 4.442 4.263 4.097 3.942 13.590 12.462 | 11.470 10.594 | 9.818 9.129 8.514 7.963 7.4697.025 6.623 6.259 5.9295.628 5.353 5.3535.101 4.870 4.657 4.460 4.279 4.110 | 3.954 14.029 12.821 | 11.764 10.836 10.017 | 9.292 8.649 8.075 | 7.562 7.1026.687 6.312 5.9735.6655.384 5.127 4.891 4.675 4.476 4.292 4.121 3.963 14.451 13.163 12.042 11.061 | 10.201 | 9.442 8.7728.176 7.645 7.170 6.743 6.359 6.011 5.696 5.696 5.410 5.149 4.909 4.690 4.488 4.302 4.130 3.970 14.857 13.489 12.303 11.272 10.371 9.5808.8838.266 8.266 7.718 7.230 6.7926.399 6.044 5.723 5.432 5.167 4.925 4.703 4.499 4.311 4.137 3.976 15.247 | 13.799 12.550 11.469 10.529 9.707 8.9858.348 7.784 7.283 6.835 6.434 6.073 5.746 5.746 5.451 5.451 5.182 5.182 4.937 4.713 4.507 4.318 4.143 3.981 15.622 14.094 12.783 11.654 10.675 9.8239.077 8.422 7.843 7.330 6.873 6.464 6.097 5.766 5.467 5.1954.948 4.721 4.514 4.323 4.147 3.985 15.983 14.375 13.003 11.826 10.810 | 9.929 9.161 8.488 7.896 7.896 7.372 6.906 6.491 6.118 5.783 5.480 5.2064.956 4.728 4.520 4.328 4.151 3.988 16.330 14.643 13.211 11.987 10.935 10.027 | 9.237 8.548 8.548 7.943 7.409 6.935 6.514 6.136 5.798 5.492 5.215 4.964 4.734 4.524 4.332 | 4.154 4.154 | 3.990 16.663 | 14.898 13.406 12.137 11.051 | 10.116 | 9.307 | 8.602 7.9847.441 7.441 6.9616.534 6.1525.810 5.810 5.502 5.223 4.970 4.739 4.528 4.335 4.157 3.992 16.984 15.141 13.591 12.278 11.158 10.1989.370 8.650 8.022 7.470 6.9836.551 | 6.166 5.820 5.510 5.2294.975 4.7434.531 4.337 | 4.159 3.994 17.292 | 15.372 13.765 12.409 11.258 10.274 9.4278.694 8.694 8.055 7.496 7.0036.566 6.177 5.8295.517 5.235 4.9794.7464.5344.3394.160 3.995 19.793 17.159 15.046 13.332 11.925 10.757 | 9.779 | 8.951 8.244 7.634 7.105 6.642 6.233 5.871 5.548 5.258 4.997 4.760 4.544 4.347 4.166 3.999