Briefly describe special problems that occur in multinational capital budgeting and describe the process for evaluating a foreign project. Now consider the following project. A U.S. company has the opportunity to lease a manufacturing facility in Japan for two years. The company must spend ¥1 billion initially to refurbish the plant. The expected net cash flows from the plant for the next two years, in millions, are: CF1 = ¥500 and CF2 = ¥800. A similar project in the U.S. would have a risk adjusted cost of capital of 10 percent. What is the project’s NPV?