On January 2, RIchie Valens pauid $24000 for 980 shares of the common stock of Acme Company. Mr. Valens recieved an $0.84 per share dicidend on the stock at the end of each year for five years. At the end of five years, he sold the stock for $22,000 Mr Valens has a goal of earning a minimum return of 10% on all of his investments.
a) Determine the net present value Negative amount should be indicated by a minus sign. Round discount factors to 3 decimal places, intermediate and final answers to the nearest dollar amount.What is the net present value?
b) Did mr Valens earn a 10% return on the stock?