A Financial Manager Has Determined That the Appropriate Discount Rate

question 99

Multiple Choice

A financial manager has determined that the appropriate discount rate for a foreign project is 17 percent. However, that discount rate applies in the United States using dollars. What discount rate should be used in the foreign country using the foreign currency? The inflation rates in the United States and in the foreign country are expected to be 3 percent and 8 percent, respectively.

• A) 17 percent
• B) 20 percent
• C) 22 percent
• D) 25 percent

---

Definitions:

Headings

Titles or captions used in documents or web pages to organize content and indicate the hierarchy of information.

Subheadings

Titles or headings used to organize content into sections within a document or presentation.

Organized

Refers to the arrangement or structuring of items or activities in a systematic, orderly manner.

Hedging Sentences

Sentences used to introduce uncertainty or caution into statements, often to soften claims or avoid direct assertions.