XYZ (American firm) has a plant in Japan. XYZ anticipates that they will need 25,000,0000 yen to meet next month's payroll. XYZ is considering entering into a forward contract to mitigate exchange rate risk. XYZ finds a bank that is willing to enter into a one month forward contract on 25 million yen at a forward rate of $.005/yen. Currently, the spot rate is $.004/yen. Assume that the spot rate is $.0045/yen when the forward contract expires.