An Investor Is Considering the Purchase of 20 Acres of Land.An

question 37

Multiple Choice

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 she should be willing to pay for the land?

• A) $1,000
• B) $10,000
• C) $100,000
• D) $150,000
• E) $1,000,000

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Definitions:

Oval Window

A membrane-covered opening that leads from the middle ear to the vestibule of the inner ear and transmits sound vibrations.

Vestibule

An entryway or antechamber leading to the main part of a building, or the central cavity of the labyrinth of the inner ear.

Auditory Ossicles

The three small bones in the middle ear that transmit sound vibrations from the eardrum to the inner ear.

Endolymph

Fluid found within the membranous labyrinth of the inner ear.