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You have an investment opportunity in Japan. It requires an investment of 0.98 million today and will produce a cash flow of 109 Yen million
You have an investment opportunity in Japan. It requires an investment of 0.98 million today and will produce a cash flow of 109 Yen million in one year with no risk. Suppose the risk-free interest rate in Canada is 4.6%, the risk-free interest rate in Japan is 1.4% , and the current competitive exchange rate is yen 110 per dollar. What is the NPV of this investment? Is it a good opportunity
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