When Evaluating International Capital Expenditure Projects, the Analyst May Compute

question 86

Multiple Choice

When evaluating international capital expenditure projects, the analyst may compute the present value of the net cash flows in the local currency and then .

• A)discount by one plus the spot rate (1+ S0)
• B)multiply by the forward exchange rate
• C)discount by the future exchange rate
• D)multiply by the spot exchange rate

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