Question
You have an investment opportunity in Japan. It requires an investment of $1.09 million today and will produce a cash flow of 128 million in
You have an investment opportunity in Japan. It requires an investment of $1.09 million today and will produce a cash flow of 128 million in one year with no risk. Suppose the risk-free interest rate in the United States is 4.1%, the risk-free interest rate in Japan is 1.3%, and the current competitive exchange rate is 110 per dollar. What is the NPV of this investment? Is it a good opportunity?
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Introductory Course On Financial Mathematics
Authors: M V Tretyakov
1st Edition
1908977388, 978-1908977380
