Property is the form of unimproved land is purchased at a cost of $8000 and is held for 6 years at which time it is sold for $42,600. An average of $220 each year is paid in property tax and may be accounted for an interest rate of 12%. The income tax rate on the long-term capital gain is 20% of the gain. Inflation during the period is 7% per year. What is the after tax annual rate of return for this investment?

Only one of the following answers are true:

a. 19.9%

b. 4.4%

c. 20.3%

d. 16.1%