b. You are considering invest in a riskless project in Canada. The project has an initial cost of C$1.5 million and is expected to produce cash inflows of C$600,000 a year for 3 years. The project will be worthless after the first 3 years. The expected inflation rate in Canada is 4 percent while it is 3.6 percent in the U.S. A risk-free security is paying 5.8 percent in the U.S. The current spot rate is C$1 = $0.8276. Assume the international Fisher effect applies. What is the net present value of this project in US dollars using the foreign currency approach? (12 marks)