• Company X in the U.S. examines a 3-year investment project in Japan, generating cash flows in yen. Suppose the risk-free rate in the U.S. and in Japan are 3%, and 1%, respectively, and the spot exchange rate is 100yen=$1. The discount rate the investment in dollars is 10%.
• Calculate NPV of this project(in dollars).

	Year0	Year1	Year2	Year3
Cash flow (yen)	-30,000	20,000	25,000	40,000

• Prepare your Excel spreadsheet showing NPV, and upload.