Jim Nance has been offered an investment that will pay him $800 three years from today

1) If the opportunity cost is 8% compounded annaully, what value should he place on the opportunity cost today? Round to nearest cent

2) The most he should pay to purchase this payment today is? Round nearest cent

3) If Jim pays less than $ 635.07 computed in part a for the investment his rate of return will be ___________ the opportunity cost of 8%

a) greater than

b) equal to

c) less than