What is the most he or she should be willing to pay for land

Assignment Help Financial Management

Reference no: EM131573280

An investor is considering the purchase of 30 acres of land. An analysis indicates that if the land is used for cattle grazing, each acre will produce a cash flow of $1,000 per year indefinitely into the future. 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. 600,000

b. 300,000

c. 1,000,000

d. 200,000

e. 2,000,000

Reference no: EM131573280

Questions Cloud

Marketing department of firm that is producing lawnmower : Assume that you are employed in the marketing department of a firm that is producing a lawnmower.

Compare and contrast between saudi arabia and united states : Compare and contrast between Saudi Arabia and United States

Storing the data in random access binary file : As you recall, the project used text files to store the data. Here in the final exam project, you will be storing the data in Random Access Binary File.

Calculate the amount of operating income : If a flexible budget is prepared at a volume of 7,500, calculate the amount of operating income. The production level is within the relevant range

What is the most he or she should be willing to pay for land : what is the most he or she should be willing to pay for the land?

Write each of given events as a set and find its probability : Suppose that on a true/false exam you have no idea at all about the answers to three questions. You choose answers randomly and therefore have a 50-50 chance.

What is the capitalisation rate : What is the capitalisation rate?

Summarize the child by tiger and the most dangerous game : The Child by Tiger and The Most Dangerous Game he essay should be about how the characterization of the characters revealed the theme of how evil can lead

How would error affect breakeven sales and operating income : How would your error affect breakeven sales and operating income under the proposed sales commission plan

User Account

All Pages