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.

SKr1,969.10

SKr1,856.07

SKr1,809.85

SKr2,028.18

SKr1,978.67