linda received $234,000 from her motbers estate. she places funds with a broker who purchased the following securities on her behalf.

a. Common stock was purchased at a cost of $99,000. The stock paid no dividends, but it was sold for $170,000 at the end of three years. b. Preferred stock was purchased at its par value of $54,000. The stock paid a 7% dividend (based on par value) each year for three years. At the end of three years, the stock was sold for $40,000. Bonds were purchased at a cost of $81,000. The bonds paid annual interest of $4,500. After three years, the bonds were sold for $89,000 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 12% return, and he gave Linda the following computations to support his statement: $ 71,000 Common stock Goin on sale (5170,000 - $99,000 Preferred stock Dividende paid ( 7554.000 3 years Toon on sale (940,000 -654,000) Bonds: Interent paid ($4,500 years) Gain on wale ($89,000 - 001.000) Net gain on all investments 11,30 (14,000 13,500 0.000 5 89,00 589, 0403 YEAR 0234.000 12.80 HIT MB1 Present Value of St. Periods 10% TIN 132 15% T 199 2026 23 22 2013 251 0.962 0.952 0.13 0.95 0.926 0.917 0.909 0901 0.893 0.885 0.877 0.870 0.362 08550847 0.840 0.833 0826 0.820 0.83 0.806 0.300 2 0.925 0.907 0.890 0.873 0857 0.842 0826 0.812 0797 0783 0709 0756 0.743 0.731 0718 0706 069 068 0672 0661 000 0.610 0.299 0.864 0.840 0.816 0.794 0.772 0.751 07:21 0.712 0.690 0.675 0.658 0.641 0.624 0609 0583 0579 0564 0.551 0537 0524 0512 4 0.85 0.823 0792 073 0.735 0708 0.63 0.659 0606 0.813 0.592 0.572 0.552 0534 0.516 0499 0.412 0.467 0.451 0.437 0.423 0410 5 0.522 0.784 0747 0.713 0681 0650 0621 0.593 0.567 053 0519 0.497 0.476 0.456 0.437 0.419 0402 0.396 0370 0.355 0.341 0328 6 0.790 0746 0.705 0606 0.630 0.596 0564 0535 0507 0.490 0.456 0432 0410 0.390 0.370 0.352 0.375 0.319 0,303 0.289 0.2750262 7 0.750 0.711 0.665 0.623 0.583 0507 0513 0482 0.452 0425 0.400 0.375 0.354 0333 0.34 0296 0.279 - 0263 0.249 0.235 0.222 0210 8 0.731 0.677 0.627 0.5820540 0502 04670434 0.404 0.375 0.351 0.327 0.305 0285 0.266 0249 0.733 0218 0.204 0191 0179 0.108 9 07030645 0.592 0.544 0.500 0.480 0424 0.391 0361 0.333 0300 0284 0.263 0.23 0.225 0.209 0194 0.180 0.162 0155 0164 0134 10 0.676 0614 0558 0508 0463 0422 0.336 0352 0.322 0.295 0.270 0247 0227 0.208 0191 0176 0.162 0:10 0137 01250196 0.107 11 0.650 0.505 0.527 0.475 0429 0.388 350 0,217 0287 0 201 202 0.215 0.195 0178 0162 0.18 0.135 0123 0112 0103 0.094 0.000 12 0.625 0.557 0.497 0.444 0.397 0.356 0.319 0.296 0257 0221 0208 017 0168 0152 07 0124 0.112 0.1020092 0.003 0.076 0.069 0.601 0.530 0.469 0.415 0.368 0.326 0.290 0.250 0.220 0.2040182 03 01450130 0.116 09040093 0.094 0.075 000 0061 0055 14 0.57 0.505 0.442 0.30 0.340 0.299 0.263 0.232 0.205 0101 0100 01 0.125 011 0.099 0.008 0.078 0.009 0062 0.055 0049 0.044 15 0.555 0.481 0.417 0.362 0.315 0275 0.299 0.209 0903 0100 01400123 0.00 0.00 0.00 0.014 0.005 0.05 0.051004500400035 16 0.534 0.458 0.394 0339 0.292 0.252 0210 0.10 0 0.141 0923 0107 003 OM 007 0062 0.054 0047 0.042 0.036 0.0320020 17 0,513 0.436 0371 0317 0.270 0231 0198 0170 0.16 0125 000 000 0000 0.06 0.000 0.052 0045 0.000 0.034 0030 0026 0.023 0.494 0.4160350 0.296 0.250 0.212 080 0153 0.110 0111 0095 090090050 0.051 000 0000 0032 0028 0.024 0.021 0011 0.475 059 0.31 0.277 0232 0194 064 0.116 0.060 003 0010 0000 0011 0043 0.097 0031 0.027 0.021 0.020 0.017 0:01 20 0.456 0377 0.312 0.250 0.21501780309 01240104 0081 0,073 0061 0.051 0013 0032 0.01 0.025 0.022 0.01 0.0100M 0012 21 0.439 0.359 0.294 0242:199 0164 005 0.112 009) OUT 0004 0.053 004 0037 0.031 0.026 0022 0.0100015 0.01 0.0110.000 22 0422 0.342 0.278 0226 0184 01500123 0101 00 0.00 0.056, 0046 0.0300002 0026 0.022 0.11 0.015001 0.01 0.000 0.007 23 0.406 0.326 0.262 0211 01700038 0.112 6,091 0.014 0.000 0049 0.040 0.03 0.027 0022 0.018 0.015 0012 0.0100009 0.007 0001 24 0390 0.310 0.24 0197 0156 0126 0102 0.002 0066 0053 004 0035 028 0.023 0.01 0.0150013 0.01 0.008 0.007 0.000 0.005 0.375 0.295 0.2330184 01460116 0002 0.074 0659 047 0000 0000 0024 0.0200016 0.01 0.0100009 0.007 0.006 0.005 0.004 26 0.361 0.281 0.220 0172 01350106 00940066 6053 0042 0035 0.026 0021 0.01 0.014 0.01 0.009 0001 0006 0.005 0.0040.000 27 0.347 0.268 0.2070161 0.125 0098 00760060 0.07 0.07 0.029 0023 0.018 0.014 0.01 0009 0.001 0.006 0.005 0.00 0.00 0.002 28 0.333 0.255 0196 0150 0.116 0.090 0.009 0054 0042 0.033 0026 0020 0.0160.012 0010 0.008 0.006 0.005 0.004 0.000 0002 0.002 0.321 02430185 0.007 0062 0063 0048 0.037 0.029 0072 0.01 0.01 0.01 0.008 0.006 0.005 0004 0.003 0002 0.002 0.002 30 0308 0231 0.174 0131 0.099 00750057 0044 0.033 0.026 0.020 0015 0012 0.009 0.007 0.005 0.004 0.003 0.003 0.002 0002 001 40 02080142 0097 0.067 0046 0082 0022 0.015 0.01 0.008 0.005 0.004 0.003 0.002 0.001 0.001 0.001 0.000 0.000 0.000 0.000 0.000 0.141 BUDI SAD 2 Pesant Vales et en Annuity of Sin Arms [sa] Penodi 1 KO M 3 4 5 9 10 11 12 ti 14 15 61 41% 5% 73 92 10 126 MX 19% 191 0.952 20% 21 2223 22 245 353 0952 0943 0935 0926 0.917 0.909 0.901 0.853 0885 0877 0370 0852 0855 0847 09000833 0826 080 08130806 0900 1366 1 1883 1808 1783 1780 1736 10 1690 1868 167 1626 1805 155 1566 1547 1528 1509 1492 1474 14571440 2725 2.723 2.673 2624 2.57 25 2482 2441 2002 2361 2.322 2263 2246 2.210 2174 210 2106 2074 2012 20m 1951 1952 3630 3.546 3.405 3.312 3.240 2170 3.102 3037 2974 294 2055 2.790 274 2.680 2.639 2589 2540 2494 2448 2.404 2362 4329 4.212 4100 2993 3.50 3.791 3696 2005 25 1433 3352 3.274 3199 3127 3.05 2.991 2926 2864 2803 2745 2009 5242 5.075 4917 4767 46234405 4355 4231 4111 3,998 3889 3784 3.5 3.589 3498 3410 3126 3245 3.167 3092 3020 2.951 5002 5.700 5.542 5.399 5.206 5033 40582 4564 4.423 4288 4.500 4.039 3922 3812 3700 3.6053508 3456 327 3242161 8.730 6463 6210 5.971 5707 5,535 5335 536 4968 479946394437 4344 4.207 407 3954 3.82 3726 3619 358 3.421 3.329 7435 7.900 6.102 6515 5.24 5.1995 5.250 5.507 5.120 50249464772 4607 4051 4300 43 400 2905 2.706 3673 566 1469 0111 7300 2020 6418 6.545 5.889 5.0 542 5216 5.099 4833 439 4494 43394992 4054 123 122992682 3.571 8.750 8306 ZU 7496 200 8 105 6.4056,207 6.908 6.687 5653 234 5029 40364656 4400 401 4.17 4005 1902 1656 9.305 9.30 304 1900 2530 2101 0.0146492 6194 698 5600 5.421 5197 498 4793 4011 4.409 427 41273905 3851 3725 996 994 ) 7900 7437 71036750 644 622 542 550 52 54 4990 415 4513 4.382 403 4053 3012 1700 10363 89 92956245 0.2442700 2.367 6982 6604 602 6002 72454057295.00 4302 407 44124285 43002962224 11110 10300972 98005598.00 2005 71 6.462 42 37 65 324 5.092 401 4.675 4.409 415 4150 4001 1550 11652 101 100 940 2069400426954054064930 470 441940001387 12300 112M 904179709122 BB1022 749 100 6728439 041 570 222 4900 4775 224.219 40 30 12650 11.000 820 10050 372 0.750 201 2200 2250 840 840 3.504 5221 5000 000 40 42 40 320 134 2018 1350 10335 0604 000 2009 26.0 6.00 5.0 5.0 5.20 5.00 S 412 4007 1942 12500 12.42 11.470105910 9120 $90 2469 700 600 5.20 5.15 5301 4310 4051 440042194190 M029 12.021 074 070292 180 2502 7102 o 12 31 504 5127 4675444297412100 14.451 012042010200442 101571206743 650 on 5.000 5.10 $500 4900 4600 4300 400 30 14057130 11,272 109.680 81 200 7700 7230 6792604 523 542 5167 4925 4703 409 4311 4111 152470712.500 10.529 9901 905 343 7754 72008205 64 63 676 451 182 4911 470 4507 41001 5622 MX 2.783 5000 123 9.071 422 2643 7800 603 64 6.097 5706 407 51954010 4721 4.10 4.573.000 15983143750311126 10000029 161 *480 2096 20 500 400 52062956 4720 4500 45 10146012119 10.935 10027 2231 540 700 700 605 6514 60 570 5.492 5.25 4964 471 447541990 16.663 149 DO 207 10 108 307 02 794 2:41 346.552 50 5.502 52234970 4719 420 425 49573992 1600475101 1591227310350 0176 3370 8650 9.00274706936551 01665120 5510 5229 4925 4701 25014501901 12.293 15372 1.705 409 1120102249427 0.001 095 7490 700356 617758295.505235 45794534101006 1970 15.000 2 1925 10957 979 0961 82447654 21053612 6233 55548 5258 491 47605440166. 1909 70 20 2 22 24 25 20 Click here to view Exhibit 148-1 and Exhibit 148.2 to determine the appropriate discount factor(s) using tables. Required: 1-a. Using a 12% discount rate, compute the net present value of each of the three investments. 1-b. On which investment(s) did Linda earn a 12% rate of return? 2. Considering all three Investments together, did Linda earn a 12% rate of return? 3. Linda wants to use the $299,000 proceeds ($170,000+ $40,000+ $89,000 = $299,000) 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 11% return over the 12-year period