BioTron Medical is a US based, medical devise company. A current customer, Numata of Japan, makes monthly purchases of JPY 125,000,000. BioTron offers payment terms of 30 days. Numata only purchases on a monthly basis and does not make purchases ahead. Numata's CFO has approached BioTron with a proposal to pay cash in yen immediately if offered a 2.5% discount. The CFO of BioTron is considering Numata's proposal or simply covering the yen payments with forward contracts. The CFO of BioTron takes note of the following market data: Spot Rate: JPY 111.40/$ 30 Day Forward Rate: JPY 111.00/$ 90 Day Forward Rate: JPY 110.40/$ Numata's WACC -7% BioTron's WACC = 6% Based upon the information above, what is the cost to hedge today if BioTran used a 30 day forward contract? Remember to account for BioTron's cost of capital so we could compare to the cost of taking the discount. (Round to the nearest whole number.) O USD $1,120,523 O USD $1,126,126 O USD $1131.757 9 USD $1,116,500