You have an investment opportunity in japan what is the npv


You have an investment opportunity in Japan. It requires an investment of $1.08 million today and will produce a cash flow of ¥125 million in one year with no risk. Suppose the risk-free interest rate in the United States is 3.9%, the risk-free interest rate in Japan is 1.1%, 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?

The NPV of this investment is $ ?(Round to the nearest dollar.)

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Financial Management: You have an investment opportunity in japan what is the npv
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