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Business, 11.02.2020 02:01 chloe1107

Jim nance has been offered and investment that will pay him $500 three years from today. 1. if his opportunity cost is 7% compounded annually, what value should he place on this opportunity today? 2. what is the most he should pat to purchase this payment today? 3. if he purchase this investment for less than the amount calculated in (1), what does it imply about the rate of return? $500, $408, his rate of return will exceed 7%. $408, $408, his rate of return will exceed 7%. $408, $408, his rate of return will be less than 7% $408, $408, his rate of return will equal to 7%.

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Jim nance has been offered and investment that will pay him $500 three years from today. 1. if his o...
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