Linda Clark received $175,000 from her mother's estate. She placed the funds into the hands of a broker, who purchased the following securities on Linda's behalf: a. Common stock was purchased at a cost of $95,000. The stock paid no dividends, but it was sold for $160,000 at the end of three years. b. Preferred stock was purchased at its par value of $30,000. The stock paid a 6% dividend (based on par value) each year for three years. At the end of three years, the stock was sold for $27,000. c. Bonds were purchased at a cost of $50,000. The bonds paid annual interest of $6,000. After three years, the bonds were sold for $52,700. The securities were all sold at the end of three years so that Linda would have funds available to open a new business venture. The broker stated that the investments had earned more than a 16% return, and he gave Linda the following computations to support his statement: $88,1003 years $175,000=16.8% Click here to view Exhibit 7B-1 and to determine the appropriate discount factor(s) using tables. Required: 1-a. Using a 16% discount rate, compute the net present value of each of the three investments. 1-b. On which investment(s) did Linda earn a 16% rate of return? 2. Considering all three investments together, did Linda earn a 16% rate of return? 3. Linda wants to use the $239,700 proceeds ($160,000+$27,000+$52,700=$239,700) from sale of the securities to open a retail store under a 12-year franchise contract. What minimum annual net cash inflow must the store generate for Linda to earn a 14% return over the 12-year period? Linda Clark received $175,000 from her mother's estate. She placed the funds into the hands of a broker, who purchased the following securities on Linda's behalf: a. Common stock was purchased at a cost of $95,000. The stock paid no dividends, but it was sold for $160,000 at the end of three years. b. Preferred stock was purchased at its par value of $30,000. The stock paid a 6% dividend (based on par value) each year for three years. At the end of three years, the stock was sold for $27,000. c. Bonds were purchased at a cost of $50,000. The bonds paid annual interest of $6,000. After three years, the bonds were sold for $52,700. The securities were all sold at the end of three years so that Linda would have funds available to open a new business venture. The broker stated that the investments had earned more than a 16% return, and he gave Linda the following computations to support his statement: $88,1003 years $175,000=16.8% Click here to view Exhibit 7B-1 and to determine the appropriate discount factor(s) using tables. Required: 1-a. Using a 16% discount rate, compute the net present value of each of the three investments. 1-b. On which investment(s) did Linda earn a 16% rate of return? 2. Considering all three investments together, did Linda earn a 16% rate of return? 3. Linda wants to use the $239,700 proceeds ($160,000+$27,000+$52,700=$239,700) from sale of the securities to open a retail store under a 12-year franchise contract. What minimum annual net cash inflow must the store generate for Linda to earn a 14% return over the 12-year period