Your manager has tasked you with developing an investment planning model for common stocks based on the following assumptions:

1. Sales for the current year are $1,000,000.

2. Net sales are expected to increase by 2% per year for the next 5 years.

3. Current investments in common stock is $250,000.

4. Annual investment rate in common stock is 1% of net sales per year for the next 5 years.

5. Dividends rate is estimated at 8% per year.