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 paid $$22,500$ for $850$ shares of Malti Company's common stock. She received a cash dividend of $$765$

on the stock at the end of each year for three years. At the end of three years, she sold the stock for $$22,000.$ Kathy would like to earn

a return of at least $10\%$ on all of her investments. She is not sure whether the Malti Company stock provides a $10\%$ 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 $10\%$ 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 value