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What concerns should you have for this investment

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Question - Knowing the value of compounding, a Canadian firm considers the opportunity to invest for five years in a Japanese investment that will return 12% annually. The Canadian alternative for a five-year investment appears to offer 7% annually. The spot exchange rate is ¥60/$(Canadian). If you were employed by this firm, what concerns should you have for this investment?

Reference no: EM133171555

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