Problem:
An investor has an opportunity to buy a parcel of land for $350,000. He plans to sell it in two years.
Required:
Question: What will the sale price have to be for the investor to get a 23% constant dollar before-tax ROR with inflation averaging 12% annually?
A) 710,495
B) 664,224
C) 598,261
D) 753,128
Note: Explain in detail.