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 should be willing to pay for land? 1. $ 1,000 2. $ 10,000 3. $100,000 4. $150,000 5. $1,000,000
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your 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 ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Mr. Coffey bought a house for $195,000. He made a 20% down payment. The interest rate is 5.25% for 30 years. Use the loan payment calculator to answer the following questions.
Answers (1)
The portion of a company's profits that are kept by the company rather than distributed to the stockholders as cash dividends is referred to as:
Answers (1)
When a firm disposes of a long-lived asset before the end of its useful life, the difference between the net book value of the asset and the sale proceeds is a gain or loss from a discontinued item.
Answers (1)
Which of the following items would NOT appear on the sticker on a new automobile? EPA Fuel Economy Rating The make and model The distance it was shipped The suggested price
Answers (1)
Describe the income elasticities of necessities
Answers (1)
New Questions in Business
A company produces a product at a variable cost of $10. the company is interested in maximizing its contributions and profits. there are 5 potential customers each of who will buy 1 at the most.
Answers (1)
In 1 or 2 sentences, explain the difference between gross pay and net pay.
Answers (2)
C. S. Sheridan Company had the following transactions involving notes payable. July 1, 2022 Borrows $53,000 from First National Bank by signing a 9-month, 8% note. Nov.
Answers (1)
Consider an identical basket of goods in both the U. S. and Taiwan. For a given nominal exchange rate, in which case is it certain that the U. S. real exchange rate with Taiwan falls? a. the price of the basket of goods falls in the U. S.
Answers (1)
Select all of the following descriptions that are true about market economies. Select all that apply: a. The government decides what methods of production will be used and how much workers will be paid. b.
Answers (1)