We give a description of the monoid of Murray-von Neumann equivalence classes of projections for multiplier algebras of a wide class of $\sigma$-unital simple $C^\ast$-algebras $A$ with real rank zero and stable rank one. The lattice of ideals of this monoid, which is known to be crucial for understanding the ideal structure of the multiplier algebra $\mul$, is therefore analyzed. In important cases it is shown that, if $A$ has finite scale then the quotient of $\mul$ modulo any closed ideal $I$ that properly contains $A$ has stable rank one. The intricacy of the ideal structure of $\mul$ is reflected in the fact that $\mul$ can have uncountably many different quotients, each one having uncountably many closed ideals forming a chain with respect to inclusion.

Let $A$ be a simple $C^*$-algebra with real rank zero, stable rank one and weakly unperforated $K_0(A)$ of countable rank. We show that a monomorphism $\phi\colon C(S^2) \to A$ can be approximated pointwise by homomorphisms from $C(S^2)$ into $A$ with finite dimensional range if and only if certain index vanishes. In particular, we show that every homomorphism $\phi$ from $C(S^2)$ into a UHF-algebra can be approximated pointwise by homomorphisms from $C(S^2)$ into the UHF-algebra with finite dimensional range. As an application, we show that if $A$ is a simple $C^*$-algebra of real rank zero and is an inductive limit of matrices over $C(S^2)$ then $A$ is an AF-algebra. Similar results for tori are also obtained. Classification of ${\bf Hom}\bigl(C(X),A\bigr)$ for lower dimensional spaces is also studied.