I need help with these 3 questions. Please,show your calculations and explain the effect of the result. Thanks

1- Your company is considering building a plant which produces coin-operated cappuccino machines in Japan. The project costs 1,000,000 (year 0) and is expected to generate a cash flow of 500,000, 600,000, and 400,000 in the next three following years (years 1, 2, and 3; no cash flow is generated after year 3). Your company's required dollar rate of return on projects of similar risk is 10%. Inflation in the US and Japan is expected to be 3% and 2%, and the current spot rate is 125/$. Assume that the international parity relations hold. Calculate the NPV of the project in dollars. 2- USE THE FOLLOWING INFORMATION TO ANSWER THE NEXT FIVE QUESTIONS A U.S. firm holds an asset in Great Britain and faces the following scenario: Probability Spot rate P* P State 1 25% $2.20/ 2,000 $4,400 State 2 50% $2.00/ 2,500 $5,000 2 State 3 25% $1.80/ 3,000 $5,400 Where, P* = Pound sterling price of the asset held by the U.S. firm P = dollar price of the same asset (a) What is the expected value of the investment in U.S. dollars? (b) What is the variance of the exchange rate? (c) What is the \"exposure coefficient\" (i.e. the regression coefficient beta)? (d) What is the volatility of the dollar value of the British asset [i.e. Var(P)]? (e) Var(e) represents the residual part of the dollar value variability that is independent of exchange rate movements. What is the Var(e)? 3- Your company is considering building a plant which produces coin-operated cappuccino machines in Japan. The project costs 1,000,000 (year 0) and is expected to generate a cash flow of 500,000, 600,000, and 400,000 in the next three following years (years 1, 2, and 3; no cash flow is generated after year 3). Your company's required dollar rate of return on projects of similar risk is 10%. Inflation in the US and Japan is expected to be 3% and 2%, and the current spot rate is 125/$. Assume that the international parity relations hold. Calculate the NPV of the project in dollars 1- Your company is considering building a plant which produces coin-operated cappuccino machines in Japan. The project costs 1,000,000 (year 0) and is expected to generate a cash flow of 500,000, 600,000, and 400,000 in the next three following years (years 1, 2, and 3; no cash flow is generated after year 3). Your company's required dollar rate of return on projects of similar risk is 10%. Inflation in the US and Japan is expected to be 3% and 2%, and the current spot rate is 125/$. Assume that the international parity relations hold. Calculate the NPV of the project in dollars. 2- USE THE FOLLOWING INFORMATION TO ANSWER THE NEXT FIVE QUESTIONS A U.S. firm holds an asset in Great Britain and faces the following scenario: Probability Spot rate P* P State 1 25% $2.20/ 2,000 $4,400 State 2 50% $2.00/ 2,500 $5,000 2 State 3 25% $1.80/ 3,000 $5,400 Where, P* = Pound sterling price of the asset held by the U.S. firm P = dollar price of the same asset (a) What is the expected value of the investment in U.S. dollars? (b) What is the variance of the exchange rate? (c) What is the \"exposure coefficient\" (i.e. the regression coefficient beta)? (d) What is the volatility of the dollar value of the British asset [i.e. Var(P)]? (e) Var(e) represents the residual part of the dollar value variability that is independent of exchange rate movements. What is the Var(e)? 3- XYZ Corporation, located in the United States, has an accounts payable obligation of 750 million payable in one year to a bank in Tokyo. The current spot rate is 116/$1.00 and the one year forward rate is 109/$1.00. The annual interest rate is 3 percent in Japan and 6 percent in the United States. XYZ can also buy a one-year call option on yen at the strike price of $0.0086 per yen for a premium of 0.012 cent per yen. Assume that the forward rate is the best predictor of the future spot rate. What is the future dollar cost of meeting this obligation using the option market hedge