You are analyzing a potential 3-year investment in Japan. It will require an initial investment of ¥45,000,000.00 and is forecasted to yield cash flows of ¥45,000,000.00 for the next 3 years. As of today, the spot exchange rate is \$0.0075/¥ and the rates of inflation expected to prevail for the next year in the US is 9% and is 10% in Japan. Your estimated cost of capital in dollars is 9.38%. What is the NPV in dollars?
$-44,166,193.72
None of the alternatives
$496,306.28
$571,715.58
$66,174,170.67