When Evaluating International Project Cash Flows, Which of the Following

question 16

Multiple Choice

When evaluating international project cash flows, which of the following factors is relevant?

• A) future inflation.
• B) blocked funds.
• C) exchange rates.
• D) all of the above

---

Definitions:

Marginal Products

A new definition for the additional units of output gained by employing one more unit of a specific input, keeping all other inputs constant.

Law of Diminishing Returns

An economic principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot continue to increase if other inputs remain the same.

Average Product

The output per unit of input, calculated by dividing total product by the quantity of input.

Prosecuting Attorney

A legal representative responsible for presenting the case in a criminal trial against an individual accused of breaking the law.