When the Value of the British Pound Changes from $1

question 6

Multiple Choice

When the value of the British pound changes from $1.50 to $1.25,the pound has ________ and the dollar has ________.

• A) appreciated; appreciated
• B) depreciated; appreciated
• C) appreciated; depreciated
• D) depreciated; depreciated

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Definitions:

Annual Cash Flows

The total amount of money being transferred into and out of a business, especially analyzed on a yearly basis.

Net Present Value Method

A method of analysis of proposed capital investments that focuses on the present value of the cash flows expected from the investments.

Cash Inflows

Cash inflows refer to the movement of money into a company's accounts from various sources, including sales, financing, or investment.

Rate of Return

The gain or loss on an investment over a specified period, expressed as a percentage of the investment's cost.