If a Project Has a Positive NPV but the NPV

question 4

Multiple Choice

If a project has a positive NPV but the NPV is greater from the project's than from the parent's perspective, then the parent firm should ______.

• A) accept the project
• B) reject the project
• C) accept the project and hedge the foreign currency cash flows
• D) reject the project and continue to look for positive-NPV projects in the foreign country
• E) None of the above