Toyota Motor Company, headquartered in Japan, needs US$10,000,000 for three years to finance working capital for its plant in Long Beach, CA. Toyota has two alternatives for borrowing:

1. Borrow $10,000,000 in New York at 3.00% per annum.
2. Borrow 1,200,000,000 in Tokyo at 1.00% per annum, and exchange these yen at the present exchange rate of 120/$ for U.S. dollars.

For both loans, Toyota will make no payments until the end of three years, when principal and accumulated interest will be paid.

At what ending exchange rate would Toyota be indifferent between borrowing U.S. dollars and borrowing yen?