Blakemore Industries Is a Canadian fiRm That Is Considering a New

Blakemore Industries is a Canadian firm that is considering a new project in the U.S. The company requires a 12 percent rate of return on its comparable Canadian projects. The inflation rate in
Canada is expected to be 4 percent while inflation is expected to be 5 percent in the U.S. Based on
This information, you know the required return on the project:

A) Is 12 percent for both the home currency and the foreign currency approaches.
B) Is greater than 12 percent if the project is analyzed using the foreign currency approach.
C) Will be greater than 12 percent if the project is analyzed using the home currency approach.
D) Will be less than 12 percent if the project is analyzed using the home currency approach.
E) Will be less than 12 percent if the project is analyzed using the foreign currency approach.