Suppose your bank account pays a 4% interest rate. You are considering purchasing a share of stock in ABC Corporation for $500 . The stock will pay you a $10 dividend at the end of years 1, 2, and 3 . You expect to be able to sell the stock at the end of year 3 for $550 . Is ABC a good investment? Provide evidence to support your answer

The present value of the investment in ABC Corporation is $516.70, so ABC would be a good investment.