Question #16 CD, in the BPP Revision Kit

In the answer for part (a) NPV calculation the US$m nominal cash flows (inflation 4% p.a.) for years 2 and 3 was not understood.
I calculated it as follows:

Year 1 = 2.60 * 1.04= 2.70
Year 2 = 3.80 * 1.04= 3.95
Year 3 = 4.10 * 1.04= 4.26

Can anyone clarify this.

Thanks in advance