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Business, 13.08.2019 00:20 cache77

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. the expected inflation rate in sweden is 2.6 percent while it is 3.2 percent in the u. s. a risk-free security is paying 5.9 percent in the u. s. the current spot rate is $1 = skr7.45. 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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