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 the uncovered interest parity relationship 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 U.S. dollars.
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 required future exchange rates.