The spot exchange rate is ¥125 = $1.The U.S.discount rate is 10 percent; inflation over the next three years is 3 percent per year in the U.S.and 2 percent per year in Japan.Calculate the dollar NPV of this project. $$\begin{array} { c c c c }
\text { Year 0 } & \text { Year 1 } & \text { Year 2 } & \text { Year 3 } \
\hline ¥1,000,000 & ¥ 500,000 & ¥ 500,000 & ¥ 500,000
\end{array}$$ I did not round my intermediate steps,if you did,select the answer closest to yours.

Question

The spot exchange rate is ¥125 = $1.The U.S.discount rate is 10 percent; inflation over the next three years is 3 percent per year in the U.S.and 2 percent per year in Japan.Calculate the dollar NPV of this project. $$\begin{array} { c c c c } 
\text { Year 0 } & \text { Year 1 } & \text { Year 2 } & \text { Year 3 } \
\hline  ¥1,000,000 &  ¥ 500,000 &  ¥ 500,000 &  ¥ 500,000
\end{array}$$ I did not round my intermediate steps,if you did,select the answer closest to yours.

Quizplus · Accepted Answer

The Answer of The spot exchange rate is ¥125 = $1.The U.S.discount rate is 10 percent; inflation over the next three years is 3 percent per year in the U.S.and 2 percent per year in Japan.Calculate the dollar NPV of this project. $$\begin{array} { c c c c } 
\text { Year 0 } & \text { Year 1 } & \text { Year 2 } & \text { Year 3 } \
\hline  ¥1,000,000 &  ¥ 500,000 &  ¥ 500,000 &  ¥ 500,000
\end{array}$$ I did not round my intermediate steps,if you did,select the answer closest to yours.

The Spot Exchange Rate Is ¥125 = $1 I Did Not Round My Intermediate Steps,if You Did,select the Is