A tract of irrigated land is expected to yield a return of $1,000 an acre. The anticipated inflation rate is 7%. The investor's real rate of return is 8% and inflation-induced capital gain is 4%. Determine the land value per acre now and for each of the next two years.

Year 1: $14,286, Year 2: $15,429, Year 3: $16,046

Year 1: $12,500, Year 2: $13,375, Year 3: $14,311

Year 1: $80, Year 2: $86, Year 3: $92

Year 1: $25,000, Year 2: $26,000, Year 3: $27,040