What Effect Does the Cash Flow from Foreign Projects Have

question 31

Multiple Choice

What effect does the cash flow from foreign projects have on the NPV calculation?

• A)NPV calculations are not possible if the cash flow is to be received in a foreign currency.
• B)NPV calculations are not affected by the currency in which the cash flow is received.
• C)NPV calculations for foreign projects have to consider currency values at the times that cash flow from the projects will be received.
• D)The discount rate used in NPV calculations takes into account the value of currencies in which cash flow is received.

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Definitions:

Code-based Processing

Involves deciphering information based on symbolic systems or codes, such as language or mathematics.

Information Processing Approach

describes a cognitive psychology theory that likens human thought processes to the operations of a computer, focusing on how information is taken in, processed, stored, and retrieved.

Empirically Tested

Refers to methods, theories, or measures that have been tested through empirical research, involving observation and experiment.

Piaget and Vygotsky

Prominent theorists in developmental psychology, Jean Piaget is known for his theory of cognitive development, while Lev Vygotsky is famous for his theory on social development and the concept of the Zone of Proximal Development.