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What is the NPV of this investment and is it a good opportunity? You have an investment opportunity in Japan. It requires an investment of

What is the NPV of this investment and is it a good opportunity?image text in transcribed

You have an investment opportunity in Japan. It requires an investment of $1.08 million today and will produce a cash flow of 127 million in one year with no risk. Suppose the risk-free interest rate in the United States is 4.8%, the risk-free interest rate in Japan is 1.9%, and the current competitive exchange rate is 110 per dollar. What is the NPV of this investment? Is it a good opportunity? What is the NPV of this investment? The NPV of this investment is $ (Round to the nearest dollar.)

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