Which of Steps A) Through D) Is INAPPROPRIATE When Discounting

question 11

Multiple Choice

Which of steps a) through d) is INAPPROPRIATE when discounting foreign currency cash flows using the parent's perspective?

• A) Estimate expected future cash flows from the project in the foreign currency and put them on a time line.
• B) Convert expected future cash flows into the domestic currency at the current spot exchange rate.
• C) Identify the appropriate risk-adjusted discount rate in the domestic currency for the project.
• D) Calculate the NPV in the domestic currency.
• E) Each of the above is appropriate.

---

Definitions:

Marketing Implications

The potential effects or outcomes of a marketing strategy or decision on the market, consumer behavior, and the overall business.

Social Media

Platforms that enable users to create, share content, or participate in social networking.

Social Networking Sites

Online platforms that facilitate the building of social networks or social relations among people who share interests, activities, backgrounds, or real-life connections.

Timeliness Effect

The impact of providing information or taking actions at the most appropriate or effective time, often enhancing outcomes or responses.