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You have an investment opportunity in Japan. It requires an investment of $ 1 . 0 8 million today and will produce a cash flow
You have an investment opportunity in Japan. It requires an investment of $ million today and will produce a cash flow of million in one year with no risk. Suppose the riskfree interest rate in the United States is the riskfree interest rate in Japan is and the current competitive exchange rate is per dollar. What is the NPV of this investment? Is it a good opportunity?
The NPV of this investment is $ Round to the nearest dollar.
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