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Use the Information to Answer the Following Question(s)

Question 30

Multiple Choice

Use the information to answer the following question(s) .
Jensen Aquatics Inc., which manufactures and sells scuba gear worldwide, is considering an investment in either Europe or Great Britain. Consider the following cash flows for each project, assume a 12% wacc, and consider these to be average risk projects for the firm. Answer the questions that follow.
Use the information to answer the following question(s) . Jensen Aquatics Inc., which manufactures and sells scuba gear worldwide, is considering an investment in either Europe or Great Britain. Consider the following cash flows for each project, assume a 12% wacc, and consider these to be average risk projects for the firm. Answer the questions that follow.    -Refer to Table 17.1. If the euro was forecast to remain constant at $1.00/euro throughout the investment period, how would the investment decision now be characterized? A)  The project would be even better than forecast. B)  The British investment should be chosen over the European investment. C)  The NPV is $6,420. D)  All of the above are true.
-Refer to Table 17.1. If the euro was forecast to remain constant at $1.00/euro throughout the investment period, how would the investment decision now be characterized?


A) The project would be even better than forecast.
B) The British investment should be chosen over the European investment.
C) The NPV is $6,420.
D) All of the above are true.

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