You have an investment opportunity in Japan. It requires an investment of $ 0.95$0.95

million today and will produce a cash flow ofyen 101101

million in one year with no risk. Suppose therisk-free interest rate in the United States is 3.5 %3.5%,

therisk-free interest rate in Japan is 2.5 %2.5%,

and the current competitive exchange rate is yen 110110

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