The purchase price on a piece of land is $650. The marginal tax rate is 8% and the nominal terminal value is $967. There is an inflation rate of 4% and a growth rate of 3% What is the nominal after-tax terminal value?
$954.32
$941.64
$957.49
None of the answers are correct
If the real land price is $600 in year three and the inflation rate is 3%. The marginal tax rate is 6% and the growth rate is 2%. Calculate the nominal terminal value for the third year?
$655.63
$636.72
$714.61
None of the answers are correct
Assume that the real net return of an investment is $35 per acre with a growth rate of 3% each year and an inflation rate of 4%. What is the real net return in the 3rd year?
$39.37
$38.25
$36.05
None of the answers are correct