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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 paid $25,000 for 860 shares of Malti Company's common stock. She received a $783 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 $35,000. Kathy would like to earn a return of at least 15% on all of her investments. She is not sure whether the Malti Company stock provide a 15% 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 factor(s) using tables. Required: 1. Compute the net present value that Kathy earned on her investment in Malti Company stock. 2. Did the Malti Company stock provide a 15% 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 Malti Company stock. (Negative amounts should be indicated by a minus sign. Round your final answer to the nearest whole dollar amount.) Net present value Red Required 2 > Exercise 14-10 (Algo) Net Present Value Analysis (L014-2] Help Kathy Myers frequently purchases stocks and bonds, but she is uncertain how to determine the rate of return that she's earning. For example, three years ago she paid $25,000 for 860 shares of Malti Company's common stock. She received a $783 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 $35.000. Kathy would like to eam a return of at least 15% on all of her investments. She is not sure whether the Malti Company stock provide a 15% return and would like some help with the necessary computations, Click here to view Exhibit 148-1 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 Maltl Company stock. 2. Did the Malti Company stock provide a 15% return? Complete this question by entering your answers in the tabs below. Required 1 Required Did the Malti Company stock provide a 15% return? Yes No

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