A farmer is planning on investing in land with real net returns of $29.44 per acre and assuming these real returns will increase by 2.21% each year. The marginal tax rate is 15.63% and the inflation rate is 4.54%. This farmer is going to sell this piece of land in 3 years. Required:
a. Calculate the real net return at the end of year 2.
b. Calculate the nominal net return at the end of year 3.
c. Calculate the after-tax nominal net return at the end of year 3.