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 the 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 the foreign-denominated NPV into the dollar-denominated NPV.
Correct Answer:
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