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?
◦ $1,000
◦ $10,000
◦ $100,000
◦ $150,000
◦ $1,000,000