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Calcute how the YEN behaves each year A U.S. based company wants to establish a subsidiary in Japan, use the following information. -The Spot exchange

Calcute how the YEN behaves each year

A U.S. based company wants to establish a subsidiary in Japan, use the following information.

-The Spot exchange rate for Yen is (direct quote = 1 USD = 136.33 JYP and indirect quote = 1 JPY = 0.0073 USD

-The YEN is expected to behave as follows:

Year 1: Loss of 3%

Year 2: Additional loss of 3%

Year 3: Same as year 2

Year 4: Gain of 3%

Year 5: Same as year 4

SHOW ALL CALCULATIONS/FORMULAS, and using Excel is preferred :)

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