Linda Clark received $212,000 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 $105,000. The stock paid no dividends, but it was sold for $155,000 at the end of three years. b. Preferred stock was purchased at its par value of $40,000. The stock paid a 8% 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 $67,000. The bonds paid annual interest of $1,000. After three years, the bonds were sold for $69,000 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 8% return, and he gave Linda the following computations to support his statement: Common stock: Gain on sale ($155,000 $105,000) $ 50,000 Preferred stock: Dividends paid (8% x $40,000 x 3 years) Loss on sale ($27,000 $40,000) 9,600 (13,000) Bonds: Interest paid ($1,000 3 years) Gain on sale ($69,000 $67,000) 3,000 2,000 $ 51,600 Net gain on all investments $51,500+3years-8.10 % $212,000 Click here to view Exhibit 13-1 and Exhibit 13B-2, to determine the appropriate discount factor(s usig tables Required: 1-a. Using a 8% discount rate, compute the net present value of each of the three investments 1-b. On which investment(s) did Linda earn a 8% rate of return? 2. Considering all three investments together, did Linda earn a 8% rate of return? 3. Linda wants to use the $251,000 proceeds ($155,000+ $27,000 $69,000 $251,000) from sale of the securities to open a retail store under a 10-year franchise contract, what minimum annual net cash inflow must the store generate for Linda to earn a 6% return over the 10-year period? Complete this question by entering your answers in the tabs below Req 3 Req 1A Req 1B Req 2 Using a 8% discount rate, compute the net present value of each of the three investments. (Enter negative amounts with a minus sign. Round computations to the nearest whole dollar.) Net presen value Common stock Preferred stock Bonds