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Exercise 14-10 (Algo) Net Present Value Analysis (L014-2) Kathy Myers frequently purchases stocks and bonds, but she is uncertain how to determine the rate of

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Exercise 14-10 (Algo) Net Present Value Analysis (L014-2) 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 pold $24,000 for 890 shares of Malt Company's common stock. She received a $837 cash dividend on the stock at the end of each year for three years. At the end of three years, she sold the stock for $25,000. Kathy would like to earn a return of at least 13% on all of her Investments. She is not sure whether the Maltl Company stock provide a 13% return and would like some help with the necessary computations Click here to view Exhibit 14B-1 and Exhibit 148-2, to determine the appropriate discount factors) using tables Required: 1. Compute the net present value that Kathy earned on her investment in Molt Company stock, 2. Did the Malt Company stock provide a 13% return? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the net present value that Kathy earned on her investment in Malt Company stock. (Negative amounts should be Indicated by a minus sign. Round your final answer to the nearest whole dollar amount.) No presentato Required 2 > 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 that she is earning. For example, three years ago she pold $24,000 for 890 shares of Malt Company's common stock. She received a $837 cash dividend on the stock at the end of each year for three years. At the end of three years, she sold the stock for $25,000. Kathy would like to eam a return of at least 13% on all of her Investments. She is not sure whether the Malte Company stock provide a 13% return and would like some help with the necessary computations. Click here to view Exhibit 148.1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using tables. Required: 1. Compute the net present value that Kathy earned on her investment in Malt Company stock. 2. Did the Malt Company stock provide a 13% return? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Did the Malt Company stock provide a 13% return? Yos NO (Required 1

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