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You want to invest in a riskless project in Sweden. The project has an initial cost of SKr3.86 million and is expected to produce cash
You want to invest in a riskless project in Sweden. The project has an initial cost of SKr3.86 million and is expected to produce cash Inflows of SKrl.76 million a year for three years. The project will be worthless after three years. The expected inflation rate in Sweden is 3.2 percent while It is 2.8 percent In the U.S. A risk-free security Is paying 4.1 percent In the U.S. The current spot rate is $1 = SKr7.7274. What is the net present value of this project in Swedish krona if the International Fisher effect applies? SKr1, 087, 561 SKr958, 029 SKr701, 458 SKr823, 333 SKr978, 177
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