You Want to Invest in a Riskless Project in Sweden

question 24

Multiple Choice

You want to invest in a riskless project in Sweden.The project has an initial cost of SKr3.8million and is expected to produce cash inflows of SKr1.75 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 4.3 percent in the U.S.A risk-free security is paying 5.5 percent in the U.S.The current spot rate is $1 = SKr7.7274.What is the net present value of this project in Swedish kroner? Assume the international Fisher effect applies.

• A)SKr587,561
• B)SKr701,458
• C)SKr823,333
• D)SKr958,029
• E)SKr1,019,774

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Definitions:

Health Patterning

The organization and behavior patterns of an individual's health practices, reflecting their lifestyle and health choices over time.

Power Prescriptions

Recommendations or strategies designed to empower individuals or communities by enhancing their capacity to control their own health and lives.

Acausal Worldview

A perspective that acknowledges events and phenomena without relying on traditional cause-and-effect relationships, often associated with synchronicity and quantum physics.

Voluntary Mutual Patterning

A cooperative process in which individuals consciously choose to engage with others in a way that influences patterns of interaction and outcomes.