Which of the Following Statements Is FALSE

question 8

Multiple Choice

Which of the following statements is FALSE?

• A)If the foreign project is owned by a domestic corporation,managers and shareholders need to determine the home currency value of the foreign currency cash flows.
• B)The most obvious difference between a domestic project and a foreign project is that the foreign project will most likely generate cash flows in a foreign currency.
• C)The risk of the foreign project is unlikely to be exactly the same as the risk of domestic projects (or the firm as a whole),because the foreign project contains residual exchange rate risk that the domestic projects often do not contain.
• D)In an internationally integrated capital market,two equivalent methods are available for calculating the NPV of a foreign project: Either we can calculate the NPV in the foreign country and convert it to the local currency at the forward rate,or we can convert the cash flows of the foreign project into the local currency and then calculate the NPV of these cash flows.

Evaluate financial decisions involving special orders and use of idle capacity to increase profits.

Understand the ethical theories and approaches in decision making.

Identify the steps of a general framework for ethics.

Recognize ethical issues concerning privacy, property, and information technology.

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Definitions:

Protégé

A person who is guided, supported, or mentored by a more experienced or influential individual.

Multiple Developers

The scenario in which several programmers or teams work together on the development of a software project or application.

Mentoring

Guidance provided by a more experienced person to support the personal and professional development of a less experienced individual.

Diversity Strategy

An organizational strategy aimed at fostering a diverse and inclusive work environment, recognizing and valuing individual differences.