Exerclse $14-10($Algo$)$ Net Present Value Analysls $[$LO$14-2]$

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 pald $$24,500$ for $1,020$ shares of Malti Company's common stock. She recelved a cash dividend of $$898$

on the stock at the end of each year for three years. At the end of three years, she sold the stock for $$20,000.$ Kathy would like to earn

a return of at least $8\%$ on all of her Investments. She is not sure whether the Malt Company stock provides a $8\%$ return and would like

some help with the necessary computations.

Click here to vew Exhiblt $14B-1$ and Exhlbit $14$B$-2,$ to determine the approprlate discount factor$($s$)$ using tables.

Required:

Compute the net present value Kathy earned on her Investment In Malti Company stock.

Did the Malty Company stock provide a $8\%$ return?

Complete this question by entering your answers in the tabs below.

Compute the net present value Kathy earned on her investment in Malti Company stock.

Note: Negative amounts should be indicated by a minus sign. Round your final answer to the nearest whole dollar amount.

Net present value