The Home Currency Approach

The home currency approach:

A) discounts all of a project's foreign cash flows using the current spot rate.
B) employs uncovered interest parity to project future exchange rates.
C) computes the net present value (NPV) of a project in the foreign currency and then
Converts that NPV into home currency.
D) utilizes the international Fisher effect to compute the NPV of foreign cash flows in the
Foreign currency.
E) utilizes the international Fisher effect to compute the relevant exchange rates needed to
Compute the NPV of foreign cash flows in home currency.