1) Sales = $500,000; Profit margin = 10%; Assets = $3 million; Debt = $2.5 million What is the firm's return on equity?

Group of answer choices

10%

18%

20%

15%

5%

2) You are considering investing in a rental house in a college town. If you anticipate that rental income will be $24,000 per year for 30 years, what is the approximate value of the investment today at a discount rate of 10%?

Group of answer choices

$226,000

$209,000

$218,000

$230,000

$252,000