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You have an investment opportunity in Japan. It requires an investment of $0.93 million today and will produce a cash flow ofyen 102 million in

You have an investment opportunity in Japan. It requires an investment of $0.93

million today and will produce a cash flow ofyen 102

million in one year with no risk.

Suppose therisk-free interest rate in the United States is 4.9%,

therisk-free interest rate in Japan is 1.3%,

and the current competitive exchange rate is 110

per dollar. What is the NPV of thisinvestment? Is it a goodopportunity?

The NPV of this investment is $???

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