Julie Kowalis, an investment analyst, wants to know if her investments during the past four years have earned at least a 12 percent return. Four years ago, she had the following investments:

a. She purchased a small building for $\$ 50,000$ and rented space in it. She received rental income of $\$ 8,000$ for each of the four years and then sold the building this year for $\$ 55,000$.

b. She purchased a small refreshment stand near the city park for $\$ 25,000$. Annual income from the stand was $\$ 5,000$ for each of the four years. She sold the stand for $\$ 20,000$ this year.

c. She purchased an antique car for $\$ 5,000$ four years ago. She sold it this year to a collector for $\$ 7,000$.

Required:

1. Using the net present value method, determine whether or not each investment earned at least 12 percent 2. Did the investments as a whole earn at least 12 percent? Explain.