A cotton farmer in Texas, is considering buying more land to expand her operation. She can cultivate an additional 110 acres. The price of land is $2,080 per acre. Each acre will generate $675 in operating receipts and have operating expenses of $545 per year. She can take out a loan of $1,750 per acre, fully amortized over 20 years with an interest rate of 3.85%. After 10 years, she would sell the land with a real terminal value of $2,020. The rate of inflation is 1.9% and the farmer's marginal tax rate is 22%. She requires a real pre-tax, risk-free return on capital of 6% and a risk premium of 4.3%. The cotton farmer also considers installing a soil quality monitoring system on all 110 acres of the new land. The system would increase real net revenue by $34 per acre. The soil sensor system costs $17,600 and would be partly covered by an additional $16,000 loan with a 5.6% interest rate, fully amortized over 5 years. The IRS will allow the sensor system to be depreciated over 15 years. It has a real terminal value of $1,680 in year 10. (i) Calculate the per-acre nominal after-tax net return in year 4 (land only). (ii) What is the after-tax, risk-adjusted discount rate? a. 4.68% b. 7.63% c. 8.03% d. 6.02% e. None of the above Enter Response Here: (iii) Calculate the annual loan payment per-acre (land only). a. $135 b. $67 c. $121 d. \$127 e. None of the above Enter Response Here: (iv) Calculate after-debt net cash flows for year 10 (land only)