You have an investment opportunity in japan it requires an


You have an investment opportunity in Japan. It requires an investment of $1.09 million today and will produce a cash flow of ¥128 million in one year with no risk. Suppose the risk-free interest rate in the United States is 4.1%, the risk-free interest rate in Japan is 1.3%, and the current competitive exchange rate is ¥110 per dollar. What is the NPV of this investment? Is it a good opportunity?

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