I am considering selling my current home through an owner financed arrangement. I have been offered a $100,000 down payment (payable immediately) and $1,000 per month for 20 years with the first payment due immediately. If the appropriate discount rate is 6% APR compounded monthly, then what is the equivalent cash offer for my house?

BADM 7090 Fall 2020 Homework #1 - Exam #1 Practice 1. Mulligan's Merchandise (MM) currently has a profit margin of 4.2%, a total asset turnover of 1.8, and a book equity multiplier of 1.8? What is MM's current ROE? If MM were able to increase revenues by 20% without changing assets, liabilities or profit margin, what would be MM's new ROE? 2. A friend has recently offered me an investment opportunity. The investment will not pay anything for the first two years, after 3 years I will receive $1,000, and after 5 years I will receive $2,000. If the appropriate discount rate is 10% APR compounded daily, then how much should I be willing to pay for this investment? 3. I am considering selling my current home through an owner financed arrangement. I have been offered a $100,000 down payment (payable immediately) and $1,000 per month for 20 years with the first payment due immediately. If the appropriate discount rate is 6% APR compounded monthly, then what is the equivalent cash offer for my house