Which of the Following Would You Expect to Improve the Dollar

question 13

Multiple Choice

Which of the following would you expect to improve the dollar NPV of a foreign capital budgeting proposal?

• A) The risk-free rate in the foreign country is higher than in the United States.
• B) Lower inflation is expected in the foreign country than in the United States.
• C) The foreign country has a less stable political environment.
• D) All of these.

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Definitions:

Diversification Strategy

A diversification strategy is used by companies that are adding new products, product lines, or businesses to their existing core products, product lines, or businesses.

Fleishman Job-Analysis

A systematic method for evaluating the skills, abilities, and knowledge required for specific jobs, developed by Edwin A. Fleishman.

Taxonomy

A system of classification that organizes concepts, objects, or information into categories based on shared characteristics or attributes.

Mental Processes

The internal, covert activities of our minds, such as thinking, feeling, and remembering.