Which of the Statements Below Is FALSE

question 82

Multiple Choice

Which of the statements below is FALSE?

• A) Multinational capital budgeting is a straightforward application of the NPV model with one twist: we can do the analysis in either domestic currency or foreign currency.
• B) If we are using foreign currency for the NPV decision, all we have to do is restate all the foreign incremental cash flow in terms of future value and use the current exchange rate.
• C) In conducting a multinational NPV, one must be careful to avoid differences with rounding of exchange rates, discount rates, and cash flow to produce the exact same value.
• D) With the foreign currency approach in NPV analysis, if we know the appropriate discount rate in the home country and the expected inflation rates in the two countries, we can determine the appropriate foreign discount rate.

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A strong conviction in someone or something's reliability, truthfulness, capability, or robustness.

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The study of meaning in language, including the analysis of the meanings of words, phrases, signs, and symbols within contexts.

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