Which Is NOT Considered a Shortcoming of the Parent Simply

question 52

Multiple Choice

Which is NOT considered a shortcoming of the parent simply adjusting discount rates to account for the additional risk that stems from a project's foreign location?

• A) Cash flows are already highly subjective.
• B) Two-sided risk in that foreign currency may appreciate or depreciate.
• C) Increased sales volume might offset the lower value of a local currency.
• D) These are all shortcomings associated with discount rate adjustment.

---

Definitions:

Residual Symptoms

Symptoms associated with schizophrenia, such as unusual beliefs or strange perceptual experiences, that are present for at least six months.

Acute Phase

A phase in the progression of a disease where symptoms are at their peak or are rapidly developing.

Catatonic Phase

A stage of certain disorders characterized by a lack of movement, extreme rigidity, and the inability to communicate.

Disorder

A disruption of normal physical or mental functions; a disease or abnormal condition.