________ estimates future cash flows from the project in the functional currency of the parent-that is, the currency of the primary economic environment in which it operates.
A) Project's perspective
B) Parent's perspective
C) Passive hedging
D) Active hedging

Question

Quizplus · Accepted Answer

From the parent's perspective, estimating future cash flows from a project involves converting those cash flows into the functional currency of the parent. This is because the parent company needs to assess the project's impact on its overall financial position, which is reported in its functional currency.

________ Estimates Future Cash Flows from the Project in the Functional