110) I have the opportunity to buy an apartment complex across the street from campus. The apartment complex has a useful life of THREE years. The owner of the apartment complex will sell it for $110.000. (In other words, the total cash outflow is $110,000). If buy the apartment complex, I can collect rent payments (cash inflows) of $50,000 per year (at the end of each year) for the next THREE years. Other than the $110,000 purchase price, there will be no other cash outflows during the THREE year period. Other than the $50,000 cash inflows per year, there will be no other cash intlows during the THREE year period. Assume that investments of like risk are paying 12% compounded annually. What should I do? A. Don't buy it because it is only worth $117.217 today B. Don't buy it because it is only worth $106,767. today C. Buy it because it is worth $120,092 today D. Buy it because it is worth $150,000 today E. Buy it because it is worth $133,928 today 11. The monthly mortgage payment on your house is $821.69. It is a 30 year mortgage at a stated rate of 6.5%, compounded monthly paid monthly). How much did you borrow? A) 5.85.000 B) $100,000 C) $115,000 D) S130,000 E) S140,000 12. What is the most you are willing to pay today for an investment that would return $300 1 year from today, $300 2 years from today, $300 3 years from today, 5300 4 years from today, 5300 5 years from today, $300 6 years from today, 5300 7 years from today? Assume all investments cam an annual interest rate of 5%, compounded annually. a. 51736 b. S1522 c. $1248 d. 52100 e. $1714 13. A first-round draft choice quarterback has been signed (today) to a three-year, $10 million contract. The details provide for an immediate cash bonus of $1 million. The player is to receive $2 million is salary at the end of the first year, 53 million the next, and 54 million at the end of the last year. Assuming a 10% discount rate, what is the package worth (in today's dollars)? A $8.3 million . $73 million . $6.3 million D $10 million E S6.8 million