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What is the most an investor should pay per acre for land

Problem:

An investor is considering the purchase of 25 acres of land. An analysis indicates that the land will produce a cash flow (net of all expenses) of $10,000 per year forever. If the investor re¬quires a return of 10 percent, what is the most the investor should pay per acre for the land?

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Finance Basics: What is the most an investor should pay per acre for land

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