ces Linda Clark received $199,000 from her mother's estate. She placed the funds into the hands of a broker, who purchased the following securities on Linda's behalf. a. Common stock was purchased at a cost of $116,000. The stock paid no dividends, but it was sold for $210,000 at the end of three years. b. Preferred stock was purchased at its par value of $23,000. The stock paid a 6% dividend (based on par value) each year for three years. At the end of three years, the stock was sold for $22,000. c. Bonds were purchased at a cost of $60,000. The bonds paid annual interest of $3,500. After three years, the bonds were sold for $64,000. 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 18% return, and he gave Linda the following computations to support his statement: Common stock: Gain on sale ($210,000 - $115,000) Preferred stocki Dividends paid (6% $23,000 3 years) Loss on sale ($22,000-$23,000) Bonds Interest paid ($3,500 x 3 years) Gain on sale ($64,000 $60,000) Net gain on all investments $ 94,000 4,140 (1,000) 10,500 4,000 $ 111,640 $111,640 + 3 years/$199,000 = 18.70% Click here to view Exhibit 14B-1 and Exhibit 148-2. to determine the appropriate discount factor(s) using tables. Required: 1-a. Using a 18% discount rate, compute the net present value of each of the three investments. 1-b. On which investment(s) did Linda earn a 18% rate of return? 2. Considering all three investments together, did Linda earn a 18% rate of return? 3. Linda wants to use the $296,000 proceeds ($210,000+ $22,000+ $64,000 $296,000) 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 12% return over the 9.vear period?