4. The annual rent on a parcel of land is $2,700. The land will gener- ate this rent from now until the end of time. What is the maximum amount you would be willing to pay to become the owner of the land? Your rate of time preference is 10 percent. Helpful hint: instead of using equation 4.11 with an infinite number of terms, you can use the following formula for the present value of a sum of money (M) that will be earned annually forever: PV = M/i. 5. Explain how profit is the value of the marginal product of an entrepreneur