Peso exchange rate

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MNO (Japanese firm) is considering investing in a four year project that costs 22 million yen. MNO expects to receive 7 million yen and 20,000 pesos each year the project is in operation. The expected yen/peso exchange rate for each of the next four years is ¥5.5/peso in year one, ¥5.25/peso in year two, ¥6/peso in year three and ¥4.5/peso in year four. Find the net present value of the project (in yen) if the appropriate discount rate is 15%. Round intermediate steps to four decimals and your final answer to two decimals. Do not use currency symbols when entering your response.

Reference no: EM132245187

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