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You have an investment opportunity in Japan. It requires aninvestment of $0.96 million today and will produce a cash flow of YEN112 million in one

You have an investment opportunity in Japan. It requires aninvestment of $0.96 million today and will produce a cash flow of YEN112 million in one year with no risk. Suppose the risk-freeinterest rate in the US is 4.4%, the risk-free interest rate in Japan is 1.2%, and the current competitive exchange rate is YEN110 per $1 .What is the NPV of this investment? Is it a good opportunity?

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