Maximum bid price that the investor would offer on the land

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Assume that the investor wants an 7% rate of return on an investment in land. Assume that the investment has a time frame of 10 years (N=10) and the growth rate and tax rates are equal to zero. If the annual returns are $ 150 per acre, what is the maximum bid price that the investor would offer on the land?

Reference no: EM131545408

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