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Time value Personal Finance Problem Jim Nance has been offered an investment that will pay him $460 three years from today. a. If his opportunity
Time value Personal Finance Problem Jim Nance has been offered an investment that will pay him $460 three years from today. a. If his opportunity cost is 7% compounded annually, what value should he place on this opportunity today? b. What is the most he should pay to purchase this payment today? c. If Jim can purchase this investment for less than the amount calculated in part (a), what does that imply about the rate of return that he will earn on the investment? a. The value Jim should place on this opportunity today is $ b. The most he should pay to purchase this payment today is q (Round to the nearest cent.) (Round to the nearest cent.) c. If Jim pays less than $375.50 computed in part a for the investment, his rate of return will be (1) (1) greater than equal to less than the opportunity cost of 7%. (Select from the drop-down men
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