Perpetuity: Amount Investor Should Pay for the Land
Not what you're looking for?
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?
Purchase this Solution
Solution Summary
The solution determines what is the most the investor should pay per acre for the land.
Education
- BA, Ain Shams University, Cairo Egypt
- MBA, California State University, Sacramento
Recent Feedback
- "ty i have more need help with"
- "ty i have jmore i need help with"
- "great help"
- "excellent help"
- "Very helpful and easy to understand."
Purchase this Solution
Free BrainMass Quizzes
Basics of corporate finance
These questions will test you on your knowledge of finance.
Business Processes
This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.
Introduction to Finance
This quiz test introductory finance topics.
Accounting: Statement of Cash flows
This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.
Six Sigma for Process Improvement
A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.