Question
You have an investment opportunity in Japan. It requires an investment of $0.93 million today and will produce a cash flow of 94million in one
You have an investment opportunity in Japan. It requires an investment of $0.93 million today and will produce a cash flow of 94million in one year with no risk. Suppose the risk-free interest rate in the United States is 4.3 %,the risk-free interest rate in Japan is 1.4 % 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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Handbook Of Hedge Funds
Authors: François-Serge Lhabitant
1st Edition
0470026634, 978-0470026632
