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A US firm is considering an investment project in Japan with the cost (initial outlay) of 1078 million, followed by expected inflows of 549 million
A US firm is considering an investment project in Japan with the cost (initial outlay) of 1078 million, followed by expected inflows of 549 million in each of the years 1 through 3. The spot exchange rate is 106 = $1. The U.S. discount rate for the project's cash flows is 8.14%. Expected inflation over the next three years is 3.26% percent per year in the U.S. and 1.94% per year in Japan. Calculate the dollar NPV of this project, in $ million, to the nearest $0.001 million. If negative, precede with a negative sign.
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