Which of steps a) through d) is INAPPROPRIATE when discounting foreign currency cash flows using the parent's perspective?

Question

Quizplus · Accepted Answer

When discounting foreign currency cash flows using the parent's perspective, it is inappropriate to convert expected future cash flows into the domestic currency at the current spot exchange rate (step B). Instead, the cash flows should be discounted using the appropriate risk-adjusted discount rate in the foreign currency and then translated back into the parent's domestic currency at the current spot exchange rate. Therefore, the correct steps are A, C, discount cash flow in foreign currency, and then convert the resulting NPV into the parent's domestic currency using the current spot exchange rate.

Which of Steps A) Through D) Is INAPPROPRIATE When Discounting