Which of the Following Is False

question 60

Multiple Choice

Which of the following is false?

• A)The competitive effect is that a depreciation may affect operating cash flow in the foreign currency by altering the firm's competitive position in the marketplace.
• B)The conversion effect is defined as a given operating cash flow in a foreign currency will be converted into a lower dollar amount after a currency depreciation.
• C)The competitive effect is defined as a given operating cash flow in a foreign currency will be converted into a lower dollar amount after a currency depreciation.
• D)none of the options

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Definitions:

Fv

Future value; a finance function used to calculate the future value of an investment based on periodic, consistent payments and a steady interest rate.

What-If Analysis

The process of changing variables in models or scenarios to examine different outcomes.

Load Button

A user interface element that, when clicked, loads or retrieves data from a storage location or starts a process.

FV Function

A type of financial function that calculates the future value of an investment based on a constant interest rate.