Assume a U.S. company has a project in Switzerland that is expected to return 1 million Swiss francs in one year. If the Swiss franc appreciates relative to the dollar, then
A) the return in Swiss francs will be lower than if the exchange rate had remained constant.
B) the return in U.S. dollars will be lower than if the exchange rate had remained constant.
C) the return in Swiss francs will be greater than if the exchange rate had remained constant.
D) the return in U.S. dollars will be greater than if the exchange rate had remained constant.
Correct Answer:
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