TABLE 16.1 Use the Information to Answer the Following Question(s)

question 19

Multiple Choice

TABLE 16.1
Use the information to answer the following question(s) .
Jensen Aquatics Inc., which manufactures and sells scuba gear worldwide, is considering an investment in either Europe or Great Britain. Consider the following cash flows for each project, assume a 12% wacc, and consider these to be average risk projects for the firm. Answer the questions that follow.

-Refer to Table 16.1.If the euro was forecast to remain constant at $1.00/euro throughout the investment period,how would the investment decision now be characterized?

• A)The project would be even better than forecast.
• B)The British investment should be chosen over the European investment.
• C)The NPV is $6,420.
• D)All of the above are true.

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Definitions:

Unprofessional

Behavior or conduct that is not in accordance with the standards of a profession or workplace, often lacking in ethics or respect.

Communication Style

The manner or approach used in conveying messages or information between individuals or groups.

Feedback

Information provided about actions or behavior which can be used as a basis for improvement.

Face Value

The apparent worth or truth of something, taken without questioning or seeking deeper understanding.