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 $14,000 for 400 shares of Malti Companys common stock. She received a $284 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 $18,000. Kathy would like to earn a return of at least 12% on all of her investments. She is not sure whether the Malti Company stock provided a 12% return and would like some help with the necessary computations. (Ignore income taxes.)

Click here to view Exhibit 11B-1 and Exhibit 11B-2, to determine the appropriate discount factor(s) using tables.

Required:

a.	Determine the net present value. (Any cash outflows should be indicated by a minus sign. Use the appropriate table to determine the discount factor(s) and round your Present Value final answers to the nearest whole dollar.)

b.

Did Kathy Myers earn 12% return on her investment?

	Yes
	No