An Investor Is Considering the Purchase of 20 Acres of Land.An

Multiple Choice

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