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Exercise 1 4 - 1 0 ( Algo ) Net Present Value Analysis [ LO 1 4 - 2 ] Kathy Myers frequently purchases stocks

Exercise 14-10(Algo) Net Present Value Analysis [LO14-2]
Kathy Myers frequently purchases stocks and bonds, but she is uncertain how to determine the rate of return she is earning. For example, three years ago she paid $24,000 for 980 shares of Malti Companys common stock. She received a cash dividend of $823 on the stock at the end of each year for three years. At the end of three years, she sold the stock for $22,000. Kathy would like to earn a return of at least 10% on all of her investments. She is not sure whether the Malti Company stock provides a 10% return and would like some help with the necessary computations.
Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using tables.
Required:
Compute the net present value Kathy earned on her investment in Malti Company stock.
Did the Malti Company stock provide a 10% return?

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