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