A U.S. firm, is considering a 4-year investment project in Japan. Please find the NPV in US$ using the information given below:

Current spot FX rate = 120/U.S.$

Working Capital: initial investment of 200,000,000 and maintaining 20% of annual sales each year and is expected to recover 100% at the end of year 4

Capital Investment: US$5,000,000 at Year 0; will be depreciated straight line to zero (100% depreciation); the expected salvage value is 10% of initial investment at the end of the project.

Marginal tax rate = 40% and the WACC = 10%

Inflation rates: 2% in the U.S. and 3% in Japan. (remain constant over the life of the project)

Fill in the below

Sales Volume (Unit) Unit Price in JPY Unit Cost in JPEX Fixed Annual Expenses in JP Year 1 2,000,000 800 400 200,000,000 Year 2 3,000,000 800 400 200,000,000 Year 3 3,000,000 700 450 200,000,000 Year 4 1,500,000 700 450 200,000,000 Year 0 Year 1 Year 2 Year 3 Year 4 US$ JP SSI Capital Investment Capital Investment Cl's Book Value Ci's Salvage Value Cl's Tax Payment for Salvage Total Cash Flow from CI NWC Level Changes in NWC Sales Volume (in units) Unit Price Unit Cost Revenue Cost of Goods Sold Gross Profits Fixed Expenses Depreciation EBIT Taxes EAT Add Depreciation OCF CFFA FX Rates CFFA in US$ NPV WACC =