EXERCISE 12-10 Net Present Value Analysis LO12-2 Kathy Myers frequently purchases stocks and bonds, but she is uncertain how to determine the rate of return that she is earning. For example, three years ago she paid $13,000 for 200 shares of Malti Company's common stock. She received a $420 cash dividend on the stock at the end of each year for three years. At ere. Capital Budgeting Decisions the end of three years, she sold the stock for $16,000. Kathy would like to earn a return of at least 14% all of her investments. She is not sure whether the Malti Company stock provide a 14% return and you like some help with the necessary computations. Required: 1. Compute the net present value that Kathy earned on her investment in Malti Company Stock. R your answer to the nearest whole dollar. 2. Did the Malti Company stock provide a 14% return?