QUESTION 24 You want to invest in a riskless project in Mexico. The project has an initial cost of 5 million pesos and is expected to produce cash inflows of 2 million pesos a year for four years. The project will be worthless after four years. The expected inflation rate in Mexico is 5.2 percent while it is 1.8 percent in the U.S. A risk-free security is paying 3 percent in the U.S. The current spot rate is $1 = 7.7274 pesos. What is the net present value of this project in Mexican peso if the international Fisher effect applies? 823,333 pesos A. O O B. 1,458,029 pesos 701,458 pesos OC. O D. 1,867,203 pesos O E. 306,704 pesos