Question: Task 11-1 (6 points) The spot exchange rate is 125 = $1. The U.S. discount rate is 10%; inflation over the next three years is

Task 11-1 (6 points) The spot exchange rate is 125 =

Task 11-1 (6 points) The spot exchange rate is 125 = $1. The U.S. discount rate is 10%; inflation over the next three years is 3% per year in the U.S. and 2% per year in Japan. Calculate the dollar NPV of this project. Year 0 Year 1 Year 2 Year 3 - 1 000 000 500 000 500 000 500 000 The NPV is (round your answer the nearest $10)

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