(Ignore Income Taxes in This Problem

Multiple Choice

(Ignore income taxes in this problem.) Two years ago Leroy paid £8,000 for 100 shares of common stock in the Uptown Company. He obtained a cash dividend of £300 at the end of each year for the next two years. At the end of the second year he sold the stock for £9,000 in cash. Using a discount rate of 12%, what is the net present value of Leroy's investment

A) £(320)
B) £(827)
C) £4,243
D) £8,745