Ardmona Dried Fruit Providers is considering expanding operations in Japan costing $930,000 Japanese yen. The current exchange rate is AUD/YEN 85.64. The risk-free interest rate in Japan is 1.82% p.a. and in Australia is 1.16%. What would be the required rate of return to calculate the NPV in Japanese Yen for this investment if investments of a similar risk in Australia have a required rate of return of 11.5%?

Answer rating: 100% (QA)

To calculate the required rate of return in Japanese yen for the investment in Japan we need to ... View the full answer