An investor is considering the purchase of 20 acres of land. His analysis is that if the land is used for cattle grazing, it will produce a cash flow of $1,000 per year indefinitely. If the investor requires a return of 10% on investments of this type, what is the most he would be willing to pay for the land?

a). $1,000 

b). $10,000 

c). $100,000 

d). $150,000 

e). $1,000,000

Answer rating: 100% (QA)

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