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.

Year 0 = -1,000,000 yen Year 1= 50,000 yen year 2 = 500,000 yen Year 3= 500,000 yen