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Check my work Exercise 14-10(Algo) Net Present Value Analysis [L014-2] Kathy...

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Accounting

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Exercise 14-10(Algo) Net Present Value Analysis [L014-2]
Kathy Myers frequently purchases stocks and bonds, but she is uncertain how to determine the rate of return she is earning. For example, three years ago she paid $21,000 for 890 shares of Malti Company's common stock. She received a cash dividend of $668 on the stock at the end of each year for three years. At the end of three years, she sold the stock for $22,500. Kathy would like to earn a return of at least 7% on all of her investments. She is not sure whether the Malti Company stock provides a 7% return and would like some help with the necessary computations.
Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using tables.
Required:
Compute the net present value Kathy earned on her investment in Malti Company stock.
Did the Malti Company stock provide a 7% return?
Complete this question by entering your answers in the tabs below.
Compute the net present value Kathy earned on her investment in Malti Company stock.
Note: Negative amounts should be indicated by a minus sign. Round your final answer to the nearest whole dollar amount.
Net present value
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