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Consider an investment opportunity in Japan. It requires $1mm today and produces a cash flow of 114mm in 1 year. Interest rate in Canada is
Consider an investment opportunity in Japan. It requires $1mm today and produces a cash flow of 114mm in 1 year. Interest rate in Canada is 4%. Interest rate in Japan is 2%. Current exchange rate is 110 per $1. What is the cost-benefit analysis of the project?
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