Kathy Myers frequently purchases stocks and bonds, but she is uncertain how to determKathy 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 paid $$33,000$ for $880$ shares of Malti Company's common stock. She received a cash dividend of $$818$

on the stock at the end of each year for three years. At the end of three years, she sold the stock for $$32,000.$ 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 provides a $7\%$ return and would like

some help with the necessary computations.

Click here to view Exhibit $14$B$-1$ and Exhibit $14$B$-2,$ to determine the appropriate discount factor$($s$)$ using tables.

Required:

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

Did the Malti Company stock provide a $7\%$ return?

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

Required $1$

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 valueine the rate of return she is earning. For example, three years ago she paid $$33,000$ for $880$ shares of Malti Company$$s common stock. She received a cash dividend of $$818$ on the stock at the end of each year for three years. At the end of three years, she sold the stock for $$32,000.$ 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 provides a $7\%$ return and would like some help with the necessary computations.