The spot exchange rate is ¥125 = $1. The U.S. discount rate is 10%; inflation over the next three years is 3% per year in the U.S. and 2% per year in Japan. Calculate the dollar NPV of this project. 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%; inflation over the next three years is 3% per year in the U.S. and 2% per year in Japan. Calculate the dollar NPV of this project.  I did not round my intermediate steps, if you did, select the answer closest to yours.

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The Answer of The spot exchange rate is ¥125 = $1. The U.S. discount rate is 10%; inflation over the next three years is 3% per year in the U.S. and 2% per year in Japan. Calculate the dollar NPV of this project.  I did not round my intermediate steps, if you did, select the answer closest to yours.

The Spot Exchange Rate Is ¥125 = $1