One Way to Increase U

question 99

Multiple Choice

One way to increase U.S. net exports is to

• A)lower the value of the U.S.exchange rate.
• B)raise the value of the U.S.exchange rate.
• C)keep the U.S.exchange rate fixed.
• D)make U.S.exchange rate fluctuate a lot over time.
• E)make sure the U.S.exchange rate appreciate over time.

Apply the concept of cost of capital in project evaluation and financing decisions.

Understand the principles and calculations involved in capital budgeting including NPV, IRR, PI, and payback period.

Ability to rank projects based on profitability index and understanding its implications.

Understand the relationship between a project's payback period and its NPV.

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