Suppose the risk-free interest rate in the united states is


You have an investment opportunity in Japan. It requires an investment of $0.91million today and will produce a cash flow often ¥106million in one year with no risk. Suppose the risk-free interest rate in the United States is 4.3%, the risk-free interest rate in Japan is 2.9% ,and the current competitive exchange rate is  ¥110 per dollar. What is the NPV of this investment? Is it a good opportunity?

What is the NPV of this investment?

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Finance Basics: Suppose the risk-free interest rate in the united states is
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