Global Markets wants to invest in a riskless project in Sweden.The project has an initial cost of SKr2.3 million and is expected to produce cash inflows of SKr850,000 a year for 3 years.The project will be worthless after the first 3 years.Assume the expected inflation rate in Sweden is 2.6 percent while it is 3.2 percent in the U.S.Also assume a risk-free security is paying 5.9 percent in the U.S.and the current spot rate is $1 = SKr8.31.What is the net present value of this project in Swedish krona using the foreign currency approach? Assume the international Fisher effect applies.

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The Answer of Global Markets wants to invest in a riskless project in Sweden.The project has an initial cost of SKr2.3 million and is expected to produce cash inflows of SKr850,000 a year for 3 years.The project will be worthless after the first 3 years.Assume the expected inflation rate in Sweden is 2.6 percent while it is 3.2 percent in the U.S.Also assume a risk-free security is paying 5.9 percent in the U.S.and the current spot rate is $1 = SKr8.31.What is the net present value of this project in Swedish krona using the foreign currency approach? Assume the international Fisher effect applies.

Global Markets Wants to Invest in a Riskless Project in Sweden.The