An Appreciation in the Value of the U

question 90

Multiple Choice

An appreciation in the value of the U.S. dollar would

• A) encourage foreigners to make more investments in the United States.
• B) encourage U.S. consumers to purchase more foreign-produced goods.
• C) increase the number of dollars that could be purchased with the euro.
• D) discourage U.S. consumers from traveling abroad.

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Definitions:

IRR

Internal Rate of Return, a financial metric used to assess the profitability of potential investments, measuring the discount rate at which the net present value of costs and benefits equal zero.

WACC

Stands for Weighted Average Cost of Capital, a calculation used to assess the cost of a company’s financing by averaging the cost of its equity and debt, weighted by their proportion in the company’s capital structure.

WACC

Weighted Average Cost of Capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is proportionately weighted.

NPV

Net Present Value is a financial metric that calculates the present value of an investment's expected cash flows minus the initial investment.