What effect does the cash flow from foreign projects have on the NPV calculation?
A) NPV calculations are not possible if the cash flow is to be received in a foreign currency.
B) NPV calculations are not affected by the currency in which the cash flow is received.
C) NPV calculations for foreign projects have to consider currency values at the times that cash flow from the projects will be received.
D) The discount rate used in NPV calculations takes into account the value of currencies in which cash flow is received.
Correct Answer:
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