Use the same question from #4. 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 Japanese cost of capital to compute the dollar-denominated NPV of this project.

Japanese cost of capital =...%

NPV = IS.....

Convert NPV into $NPV = $IS...