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If a Project Has a Negative NPV from the Parent's

Question 37

Multiple Choice

If a project has a negative NPV from the parent's perspective but a positive NPV from the project's perspective, then the parent firm should ______.


A) accept the project
B) reject the project
C) accept the project and try to capture the value in the foreign currency today
D) reject the project and continue to look for positive-NPV projects in the foreign country
E) None of the above

Correct Answer:

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