When Using the Projected Spot Exchange Rate to Translate Both

question 40

Multiple Choice

When using the projected spot exchange rate to translate both the budget and performance figures into the corporate currency, the projected rate in such cases will typically be the

• A) forward exchange rate as determined by the foreign exchange market.
• B) exchange rate that exists at the start of a project.
• C) exchange rate when the budget was prepared.
• D) transfer price that a firm will offer to one or more of its subsidiaries.