Linda Clark received $215,000 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 $102,000. The stock paid no dividends, but it was sold for $195,000 at the end of three years. b. Preferred stock was purchased at its par value of $43,000. 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 $29,000. c. Bonds were purchased at a cost of $70,000. The bonds paid annual interest of $3,500. After three years, the bonds were sold for $98,000. 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 19% return, and he gave Linda the following computations to support his statement: $ 93,000 Common stock: Gain on sale ($195,000 $102,000) Preferred stock: Dividends paid (6% * $43,000 * 3 years) Loss on sale ($29,000 - $43,000) Bonds: Interest paid ($3,500 x 3 years) Gain on sale ($98,000 - $70,000) Net gain on all investments 7,740 (14,000) 10,500 28,000 $125,240 $125,240 + 3 years $215,000 = 19.40 % Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using tables. Required: 1-a. Using a 19% discount rate, compute the net present value of each of the three investments. 1-b. On which investment(s) did Linda earn a 19% rate of return? 2. Considering all three investments together, did Linda earn a 19% rate of return? 3. Linda wants to use the $322,000 proceeds ($195,000 + $29,000 + $98,000 = $322,000) from sale of the securities to open a retail store under a 7-year franchise contract. What minimum annual net cash inflow must the store generate for Linda to earn a 10% return over the 7-year period? Req 1A Req 1B Reg 2 Req3 Using a 19% 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 present value Common stock Preferred stock Bonds Reg 1A Req 1B Reg 2 Req3 On which investment(s) did Linda earn a 19% rate of return? (You may select more than one answer.) Common Stock Bonds Preferred Stock Req 1A Reg 1B Reg 2 Req3 Considering all three investments together, did Linda earn a 19% rate of return? Yes No Req 1A Req 1B Req 2 Req3 Linda wants to use the $322,000 proceeds ($195,000 + $ 29,000 + $98,000 = $322,000) from sale of the securities to open a retail store under a 7-year franchise contract. What minimum annual net cash inflow must the store generate for Linda to earn a 10% return over the 7-year period? (Round your answer to the nearest whole dollar.) Minimum annual net cash inflow