Lucinda Lacy purchased a house today for $103,000 by making a down payment of $12,000 and paying closing costs of: Loan origination fee Appraisal fee Survey fee Attorney fee Processing fee . . Escrow fee Other misc. costs 1% of purchase price $300 250 350 400 250 620 Lucinda has a 3.5% APR, compounded monthly loan for 15 years. Her taxes and insurance are $292 per month. Lucinda has an estimate for a $12,000 firm, fixed price contract to remodel the house and this expense will be equally distributed over the period of her ownership. After remodeling, she estimates that she could sell the house for $138,000. Her selling expenses would be 7% sales commission plus $1,000. 1. Determine Lucinda's rate of return, manually, using the trial and error metho outlined in the text (p. 183 -also called the Ball-park method), if she owns th house for 6 months. Give the effective ROR per year. To get full credit, you must show all cash flow diagrams and manual calculations of how you got the ROR in #1. (50 points) 1. Calculate the monthly mortgage payment. 2. Determine the value of the mortgage loan payoff after 6 months. 3. Determine the total amount of money Lucinda invested on the first day. 4. Compute her total monthly expenses during the period that she owned the house. 5. Calculate her return (i.e., how much money did she have after she paid off the bank and the real estate commission). 6. Draw the final CF Diagram that you will use to determine the ROR. 7. Use the Ballpark (trial and error method outlined in the text) to solve for i*