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 $$27,000$ for $1,010$ shares of Malti Company$$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 $7\%$ return and would like some help with the necessary computations.

Required:

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

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