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FxHmit 1481 Provair Value ors1) ((1+r))21 Proent Value of as Anbuity arst in Arrask r1((1+r))21 Exercise 14-10 (Algo) Net Present Value Analysis [LO14-2] Kathy Myers

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FxHmit 1481 Provair Value ors1) ((1+r))21 Proent Value of as Anbuity arst in Arrask r1((1+r))21 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 paid $27,000 for 1,010 shares of Matti Company's common stock. She received a $879 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 7% on all of her investments. She is not sure whether the Malti Company stock provide a 7% retum and would tike some help with the necessary computations. Click here to view Exhibit 148-1 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 7% return? Complete this question by entering your answers in the tabs below. Compute the net present value that Kathy earned on her investment in Malti Company stoc indicated by a minus sign. Round your final answer to the nearest whole dollar amount.)

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