Question
Ardmona Dried Fruit Providers is considering expanding operations in Japan costing $930,000 Japanese yen. The current exchange rate is AUD/YEN 85.64. The risk-free interest rate
Ardmona Dried Fruit Providers is considering expanding operations in Japan costing $930,000 Japanese yen. The current exchange rate is AUD/YEN 85.64. The risk-free interest rate in Japan is 1.82% p.a. and in Australia is 1.16%. What would be the required rate of return to calculate the NPV in Japanese Yen for this investment if investments of a similar risk in Australia have a required rate of return of 11.5%?
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Derivative Pricing
Authors: Ambrose Lo
1st Edition
0367734214, 978-0367734213
