What is the nominal after-tax terminal value

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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

Reference no: EM131916350

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