Brian Rein invested $10,000 in the stock market_NPV

On January 2, 20X7, Brian Rein invested $10,000 in the stock market and purchased 500 shares of Heartland Development, Inc. Heartland paid cash dividends of $2.70 per share in 20X7 and 20X8; the dividend was raised to $3.30 per share in 20X9. On December 31, 20X9, Rein sold his holdings and generated proceeds of $13,100. Rein uses the net-present- value method and desires a 16% return on investments.

a. Prepare a chronological list of the investment’s cash flows. Note: Rein is entitled to the 20X9 dividend.

b. Compute the investment’s net present value, rounding calculations to the nearest dollar.