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Question
An investor is considering the purchase of 20 acres of land. An analysis indicates 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 percent on investments of this type, what is the most he or she should be willing to pay for the land?
a. $1,000
b. $10,000
c. $100,000
d. $150,000
e. $1,000,000
Answer
This answer is hidden. It contains 39 characters.
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