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The spot exchange rate is 125 = $1. The U.S. discount rate is 10 percent; inflation over the next three years is 3 percent per
The spot exchange rate is 125 = $1. The U.S. discount rate is 10 percent; inflation over the next three years is 3 percent per year in the U.S. and 2 percent per year in Japan. Calculate the dollar NPV of this project.
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