You have an investment opportunity in Japan. It requires an investment of
$0.91
million today and will produce a cash flow of
¥108
million in one year with no risk. Suppose the risk-free interest rate in the United States is
4.7%
, the risk-free interest rate in Japan is
1.5%
, and the current competitive exchange rate is
¥110
per dollar. What is the NPV of this investment? Is it a good opportunity?
The NPV of this investment is
$
q,
(Round to the nearest dollar.)