With international investing,unlike domestic investing,exchange rate risk could cause a marginally-positive-NPV project to be rejected due to the additional risk.

Question

Quizplus · Accepted Answer

Exchange rate risk is a significant risk involved in international investing. This risk could cause the marginally-positive-NPV project to be rejected due to the additional risk involved, therefore making the statement true.

With International Investing,unlike Domestic Investing,exchange Rate Risk Could Cause a Marginally-Positive-NPV