Larry spent $1,000 to raise vegetables that cost of the vegetables in a store would have been $2,400 e he f Dawn purchased an automobile for $1,500 that was worth $3,500. The was in desperate need of cash. ng 29. LO.1,2,5 Harper is considering three alternative investments of $10,000 Assume that the taxpayer is in the 24% marginal tax bracket for ordin and 15% for qualifying capital gains in all tax years. The selected investment w liquidated at the end of five years. The alternatives are: . A taxable corporate bond yielding 5.333% before tax and the interest can be reinvested at 5.333% before tax. . A Series EE bond that will have a maturity value of $12,200 (a 4% before-tax rate of return). . Land that will increase in value. The gain on the land is classified and taxed as a long-term capital gain. The income from the bonds is taxed as ordinary income. How much must the land increase in value to yield a greater after-tax return than either of the bonds? Use the future value tables in Appendix H as needed for your calculations and comparisons. Present your answers using spreadsheet software such a Microsoft Excel Futre value U APPENDIX 3 7 1 1 1 5 H Present Value and Future Value Tables 10100 1.0200 1,0300 1,0400 1,0500 1 1,0201 1.0404 1,0609 10816 1.1025 1,0303 1.0612 1,0927 1.1249 1.1576 1.1910 12250 12597 12950 13310 13676 0406 1.0824 1.1255 1.1699 12155 12525 13108 13605 1.4116 1 0510 1.1041 1.1593 12167 12763 13382 1,4026 1,4693 15386 16105 1.0615 1.1262 1.1941 12653 13401 14185 1,5007 189 16771 1,271 0721 1.1487 12299 13159 14071 15036 1,6058 17138 182801 0829 1.1717 1.2668 13686 14775 15938 1.7182 1.8509 1.9926 21436 23045 24760 10600 1.0700 1.0800 1,0900 1.1000 1.1100 1.1200 1.1236 1.1449 1.1664 1.1881 12100 1.2321 1254 5 1.0510 1.6105 1.6851 1.7623 9 1.09371.1951 1.3048 14233 15513 1.6895 1.8385 1.9990 2.1719 23579 25580 2.731 11046 12190 1.3439 14802 16289 17908 19672 21589 23674 25937 28394 3.1058 11 1.1157 1.2434 1.3842 15395 1.7103 1,8983 2.1049 23316 25804 28531 3,1518 34785 2 1.1268 1,2682 14258 1,6010 17959 20122 22522 25182 28127 3,1384 349853.8960 13 1.1381 1,2936 14685 1,6651 1.8856 21329 24098 27196 3,0658 34523 3,8833 14 11495 13195 15126 1.7317 1.9799 2.2609 25785 2.9372 33417 37975 1 15 1.1610 1.3459 15580 1.8009 2.0789 2.3966 2.7590 3.1722 3,6425 41772 47845 54736 43635 43104 48871 1.1726 13728 1,6047 1.8730 2.1829 25404 29522 34259 3.9703 5950 $3109 61304 7 1.1843 1.4002 1.6528 1.9479 2.2920 2.6928 3.1588 3.7000 43276 5.0545 5.8951 6.8660 1961 1.4282 1.7024 2.0258 2.4066 2.8543 3.3799 3.9960 47171 5.55996.5436 75900 1.2081 14568 1.7535 2.1068 2.5270 3.0256 3.6165 4.3157 5.1417 6.1159 72633 86128 Future Value of an Ordinary Annuity of $1 2.0100 2.0200 20300 2.0400 20500 20600 20700 2,0800 20900 2100021100 21200 3.0301 3.0604 3,0909 3.1216 3.1525 3.1836 3.2149 32464 32781 100 33421 74 1.00001,0000 1.0000 1.0000 1,00001,0000 1,0000 1,0000 10000 1,0000 1,0000 5.1010 5.2040 5.3091 5.4163 5.5256 ,6371 7507 58666 59847 61051 6.2278 6352 6.1520 6.3081 6.4684 6.6330 68019 69753 71533 73359 75233 77156 79129 8.1152 72135 74343 7.6625 7.8983 8. 8 2857 85830 8.8923 92142 9.5491 9.3685 9.7546 10.1591 10.5828 110266 11.4913 11.9780 12.4876 130210 104622 109497 11.4639 120061 125779 13.1808 13.8164 14.486s 151929 15.937 115668 12.1687 12.8078 13.4864 14.2068 14.9716 15.7836 16.6455 175603 18.53 12.6825 13.4121 14.1920 150258 15.9171 16.8699 178885 189771 20.1407 138093 14.6803 15,6178 16.6268 17.7130 18.8821 20140 214953 229534 245227 26.21 149474 15.9739 170863 18.2919 19.5966 21.0151 225505 242149 260192 27.9750 16.0969 17.2934 18.5989 20.0236 21.5786 23.2760 172579 18.6393 20.1569 21.8245 3 184304 20.0121 21.7616 23.6975 258404 4406044.1216 41836 4.2465 43101 43746 44399 5061 45731 46410 407 43793 420 8.3938 86540 89228 9.2004 9.4872 97833 10.0890 9.8975 10.2598 106306 11.028511.4339 11.8594 12.2997 13.5795 14.1640 14.7757 2 195614 20.6546 213843 227132 24.1331 16 28.0291 30.0949 323926 25.1290 27.1521 29.3609 31.7725 344054 37 2797 278881 30.3243 33.0034 35.9497 39.1899 42.7533 0 8402 33.7502 36.9737 405447 445008 48.8837 33.9990 37402 413013 .5992 50.3959 55.7497 37 3790 41.4463 450185 51.1591 56.9395 63.4397 47 21.4123 234144 25.6454 208109 22.8406 25.1169 27.6712 220190 242974 26.8704 29 457620 51.1601 57.2750 642028 72