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 the end of three years, she sold the stock for $16,000. Kathy would like to earn a return of at least 14% on all of her investments. She is not sure whether the Malti Company stock provide a 14% 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 factor(s) using tables Required: 1. Compute the net present value that Kathy earned on her investment in Malti Company stock. 2. Did the Maiti Company stock provide a 14% 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.) Not present value Perit Industries has $100,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternatives are Cost of equipment required Working capital investment required Annual cash inflows Salvage value of equipment in six years Life of the project Project Project B $100,000 $ $ 0 $100,000 $ 21,00 $ 16,000 $ 8,000 $ 6 years 6 year's The working capital needed for project will be released at the end of six years for investment elsewhere. Perit Industries' discount rate is 14% Click here to view Exhibit 148-1 and Exhibit 148-2, to determine the appropriate discount radiorts) using tables. Required: 1 Compute the net present value of Project A (Enter negative values with a minus sign. Round your final answer to the nearest whole dollar amount.) 2 Compute the net present value of Project B. (Enter negative values with a minus sign. Round your final answer to the nearest whole dollar amount.) 3. Which investment alternative (If either) would you recommend that the company accept? Wack my work 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 of Project A (Enter negative values with a minus sign. Round your final answer to the nearest whole dollar amount.) 2. Compute the net present value of Project B (Enter negative values with a minus sign. Round your final answer to the nearest whole dollar amount.) 3. Which investment alternative (if either would you recommend that the company accept? 1. Net present value project A 2. Net present value project B 13. Which investment alternative (if either) would you recommend that the company accept
