RadSys Corp recently signed a contract to supply 100 portable air defense radar units with cointegrated laser lock-on capability to the Japanese Navy. The account receivable from this sale is due in 720 days (accounts payable by the Japanese government must be settled in JPYs by law) and is for 20 billion JPYs. The CFO of RadSys is concerned that the JPY will depreciate during this time and asks the companys I-bank, FarEast Bank LLC, for a forward exchange rate quote in which RadSys would sell 20B JPYs for USDs in 720 days. The FarEast banker calls the CFO back and says Great news! We can lock in a forward rate equal to the current spot exchangeThe CFO calls you in and says, Should we take this deal? You promise to look into it. Because of the time frame, you cannot find 720-day forward quotes online for JPYs but, instead, put together the following table.

Spot Rate = S(USD/JPY) = $0.01/

720-Day Money Market Interbank Loan RatesJPY0.60%USD1.20%

Using forward discount/premium analysis, show why or why this is not a deal that RadSys should take?