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A U.S. company is considering a project in Japan. Given the information below, what is the net present value of the project in U.S. dollars?

A U.S. company is considering a project in Japan. Given the information below, what is the net present value of the project in U.S. dollars? Expected future cash flows in Japanese Yen: CF0 = - 1,000 million. CF1 = 500 million. CF2 = 800 million. Risk-adjusted cost of capital for a similar U.S. project = 10%. Current Spot exchange rate is that 110 Japanese Yen can be exchanged into 1 U.S. dollar. U.S. government bond rates: 1-year bond = 2.0% 2-year bond = 2.8% Japan government bond rates: 1-year bond = 0.05% 2-year bond = 0.26%

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