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% 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


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