Npv of the project from the project perspective

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Reference no: EM133121321

You work for a firm whose home currency is the Danish Krone (DKK) and that is considering a foreign investment. The investment yields expected after-tax Japanese Yen (JPY) cash flows (in millions) as follows:

-JPY673 in Year 0,

JPY375 in Year 1

JPY234 in Year 2

JPY165 in Year 3

The expected rates of inflation in each country are constant per year: 5.29% in Denmark, and 7.32% in Japan. From the project's perspective the required return is 15.36%, while from the parent's perspective, the required rate of return is 9.55%. The spot exchange rate is JPY18.14/DKK.

What is the NPV of the project from the project's perspective?

Reference no: EM133121321

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