Linda Clark received $265,000 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 $150,000. The stock paid no dividends, but it was sold for $255,000 at the end of three years. b. Preferred stock was purchased at its par value of $50,000. 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 $18,000. c. Bonds were purchased at a cost of $65,000. The bonds paid annual interest of $2,000. After three years, the bonds were sold for $80,000 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 13% return, and he gave Linda the following computations to support his statement: $ 105,000 Common stock: Gain on sale ($255,000 - $150,000) Preferred stock: Dividends paid (8% * $50,000 X 3 years) Loss on sale ($18,000 - $50,000) Bonds: Interest paid ($2,000 x 3 years) Gain on sale ($80,000 - $65,000) Net gain on all investments 12,000 (32,000) 6,000 15,000 $ 106,000 $106,000 + 3 years $265,000 = 13.30 % 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 13% discount rate, compute the net present value of each of the three investments. 1-b. On which investment(s) did Linda earn a 13% rate of return? 2. Considering all three investments together, did Linda earn a 13% rate of return? 3. Linda wants to use the $353,000 proceeds ($255,000 + $18,000 + $80,000 = $353,000) from sale of the securities to open a retail store under a 8-year franchise contract. What minimum annual net cash inflow must the store generate for Linda to earn a 12% return over the 8-year period