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Common stock: Gain on sale ($160,000 $95,000) $65,000 Preferred stock: Dividends paid (6% x $30,000 x 3 years) 5, 400 Loss on sale ($27,000 $30,000)

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Common stock: Gain on sale ($160,000 $95,000) $65,000 Preferred stock: Dividends paid (6% x $30,000 x 3 years) 5, 400 Loss on sale ($27,000 $30,000) (3,000) Bonds: Interest paid ($6,000 x 3 years) 18,000 Gain on sale ($52, 700 $50,000) 2, 700 Net gain on all investments $88, 100 $88, 100 3 years 16.8% $175,000 Using a 16% discount rate, compute the net present value of each of the three investments, on which investment(s) did Linda earn a 16% rate of return? (Round computations to the nearest whole dollar.) 2. Considering all three investments together, d Linda earn a 16% 3. Linda wants to use the proceeds $27,000 $52, 700 from sale of the securities to open a retail store under a 12-year franchise contract. What annual net cash must the store generate for Linda to earn a 14% return over the 12-year period? Round computations to the nearest whole dollar. Common stock: Gain on sale ($160,000 $95,000) $65,000 Preferred stock: Dividends paid (6% x $30,000 x 3 years) 5, 400 Loss on sale ($27,000 $30,000) (3,000) Bonds: Interest paid ($6,000 x 3 years) 18,000 Gain on sale ($52, 700 $50,000) 2, 700 Net gain on all investments $88, 100 $88, 100 3 years 16.8% $175,000 Using a 16% discount rate, compute the net present value of each of the three investments, on which investment(s) did Linda earn a 16% rate of return? (Round computations to the nearest whole dollar.) 2. Considering all three investments together, d Linda earn a 16% 3. Linda wants to use the proceeds $27,000 $52, 700 from sale of the securities to open a retail store under a 12-year franchise contract. What annual net cash must the store generate for Linda to earn a 14% return over the 12-year period? Round computations to the nearest whole dollar

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