Find the japanese cost of capital

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Reference no: EM132693006

Use the same question from #4. The spot exchange rate today 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. There is a project that requires an initial investment of ¥1,000,000, and generates ¥500,000 each year in the following 3 years.

Find the Japanese cost of capital to compute the dollar-denominated NPV of this project.

Japanese cost of capital = ...%

¥NPV = ¥ IS.....

Convert ¥NPV into $NPV = $ IS...

Reference no: EM132693006

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