The Home Currency Approach

The home currency approach:

A) generally produces more reliable results than those found using the foreign currency approach.
B) requires an applicable exchange rate for every time period for which there is a cash flow.
C) uses the current risk-free nominal rate to discount all cash flows related to a project.
D) stresses the use of the real rate of return to compute the net present value (NPV) of a project.
E) converts a foreign denominated NPV into a dollar denominated NPV.