10. Farmer Bob is considering buying 100 acres of land. He estimates that, net of expenses, his total crop revenue from the land would be $1000 per acre annually and that this revenue would neither increase or decrease over time. What is the maximum amount that Bob would pay for the land if his discount rate is 6%? (a) $2,000,000 (b) $1,968,000 (c) $1,666,667 (d) $1,400,000 (e) Cannot be determined from given information 11. ABC Farming Company is considering the same 100 acre parcel of farm land as Farmer Bob. They have the same cashflow projections as Farmer Bob but, due to excellent access to capital, their discount rate is 5%. What is the maximum amount ABC Farming Company would pay for the land? (a) $2,000,000 (b) $1,968,000 (c) $1,666,667 (d) $1,400,000 (e) Cannot be determined from given information