Your U.S.-based firm is considering a capital budgeting project in Japan. Suppose that the spot exchange rate for Japanese yen is #122/S and that the one year forward exchange rate for Japanese yen is 130/s. The discount rate is 5% in the U.S. What's the discount rate that should be used in Japan on yen- denominated cash flows? 11.89% 6.56% 3.28% 1.67% None of the above