Question
The spot exchange rate today is 125 = $1. The U.S. discount rate is 10%; inflation over the next three years is 3% per year
The spot exchange rate today is 125 = $1. The U.S. discount rate is 10%; inflation over the next three years is 3% per year in the U.S. and 2% per year in Japan. There is a project that requires an initial investment of 1,000,000, and generates 500,000 each year in the following 3 years. Find the dollar cash flows to compute the dollar-denominated NPV of this project. Japanese cost of capital = Blank 1. Fill in the blank, . %. (Round your answer to 3 decimal places) NPV = Blank 2. Fill in the blank, Convert NPV into $NPV = $ Blank 3. Fill in the blank,
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