Princess Cruise Company (PCC) purchased a ship from Mitsubishi Heavy Industry for 800 million Japanese yen payable in one year. The current spot rate is 120/$ and the one-year forward rate is 105/$. The annual interest rate is 6% in Japan and 8% in the United States. What is the future dollar cost of meeting this obligation using the money market hedge?

• a. $6,543,210
• b. $7,477,954
• c. $6,792,453
• d. $7,762,803