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?

Select one:

a. 600,000

b. 300,000

c. 1,000,000

d. 200,000

e. 2,000,000