1. Mr. Agirich has the opportunity to purchase some farm land at $3,000/acre. He expects that real land prices will increase at 5% per year and inflation will be 2%. His pretax risk adjusted discount rate is 14%. Assume that the land will be sold in 10 years and the marginal tax rate is 23%. The effective interest rate on land loans is 6%. (0) Calculate the after-tax risk adjusted discount rate. a 14% b. 10.7% C. 6% d. 4.6% e. None of the answers are correct Enter Response Here: Calculate the real price of land in 10 years. a. $3,657 b. $8,291 c. $4,887 d. $5,373 e. None of the answers are correct Enter Response Here: Calculate the nominal price of land in 10 years. a. $4,458 b. $6,550 C. $10,019 d. $5,957 e. None of the answers are correct (iv) Calculate the after-tax terminal value of the land. $5.957 b. $5,277 . C. $4,887 d. $3,000 e. None of the answers are correct Enter Response Here: (V) Calculate the Present Value of the after-tax terminal value. a. $2,140 b. $1,756 C. $1,896 d. $1,077 e. None of the answers are correct (vi) What is the approximate maximum bid price for this land? a. $5,140 b. $4,756 c. $4,077 d. $4,896 e. None of the answers are correct Enter Response Here