If we are using foreign currency for the NPV decision,all we have to do is restate all the ________ in terms of present value and use the current exchange rate.

Question

Quizplus · Accepted Answer

When using foreign currency for the NPV decision, we need to restate all the foreign incremental cash flows in terms of present value using the current exchange rate. The domestic incremental cash flows and salvage value do not need to be restated as they are already in the domestic currency.

If We Are Using Foreign Currency for the NPV Decision,all