There are basically two approaches to find out NPV of a foreign based project's capital budgeting exercise. Which are those two?

Question

Quizplus · Accepted Answer

The two approaches to find out the Net Present Value (NPV) of a foreign-based project's capital budgeting exercise are the Home Currency Approach and the Foreign Currency Approach. These methods involve evaluating the project's cash flows in either the currency of the country where the project is located (foreign currency) or converting those cash flows into the investor's home country currency.

There Are Basically Two Approaches to Find Out NPV of a Foreign