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You have an investment opportunity in Japan. It requires an investment of $ 1.09$1.09million today and will produce a cash flow ofyen 110110million in one

You have an investment opportunity in Japan. It requires an investment of $ 1.09$1.09million today and will produce a cash flow ofyen 110110million in one year with no risk. Suppose the risk-free interest rate in the United States is 4.3 %4.3%,the risk-free interest rate in Japan is 2.7 %2.7%,and the current competitive exchange rate is yen 110110per dollar. What is the NPV of this investment? Is it a good opportunity?

What is the NPV of this investment?

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