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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Definitions:

Mutual Respect

A foundational element in relationships and interactions, where each party acknowledges and honors the dignity and rights of the other.

Consideration

The process of thinking carefully about something, often before making a decision.

Nonverbal Communication Cues

Signals or signs used to convey messages without words, such as gestures, facial expressions, and body language.

Personal Appearance

The way an individual presents themselves through their physical appearance and attire, which can impact first impressions and professional opportunities.