Which of the Statements Below Is TRUE

question 31

Multiple Choice

Which of the statements below is TRUE?

• A)Multinational capital budgeting is a complicated application of the NPV model because we can only do the analysis in foreign currency.
• B)The application of the NPV model to multinational firms is different from any other project in that we must always find the appropriate discount rate for the project in the foreign country rate.
• C)When performing multinational capital budgeting,the appropriate discount rate varies based on the currency that you choose to analyze the project.
• D)It is impossible to tell the actual NPV in the home currency because foreign cash flows are from different time periods.

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