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Supposed that the required rate of return is 10% on Canadian dollars. The Canadian interest rate is 2%, while the Japanese interest rate is 0.05%.

Supposed that the required rate of return is 10% on Canadian dollars. The Canadian interest rate is 2%, while the Japanese interest rate is 0.05%. The current spot rate is ¥/$ = 110. What is the compatible required rate of return on Japanese-yen cash flows?

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