PROBLEM $13-29$ Net Present Value Analysis LO$13-2$

Linda Clark received $$175,000$ from her mother's estate. She placed the funds into the hands of a broker, who purchased the following securifies on Linda's behalf:

a$.$ Common stock was purchased at a cost of $$95,000.$ The stock paid no dividends, but it was sold for $$160,000$ at the end of three years.

b$.$ Preferred stock was purchased at its par value of $$30,000.$ The stock paid a $6\%$ dividend $($based on par value$)$ each year for three years. At the end of three years, the stock was sold for $$27,000.$v