You have an investment opportunity in Japan. It requires an investment of $1.08 million today and will produce a cash flow of ¥125 million in one year with no risk. Suppose the risk-free interest rate in the United States is 3.9%, the risk-free interest rate in Japan is 1.1%, and the current competitive exchange rate is ¥110 per dollar. What is the NPV of this investment? Is it a good opportunity?
What is the NPV of this investment?
The NPV of this investment is $ ?(Round to the nearest dollar.)