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RB International Is Considering an International Project in Which to Invest.One

Question 29

Multiple Choice

RB International is considering an international project in which to invest.One fundamental principle of capital budgeting concerning the discount rate that it should follow is


A) it should reflect the currency of denomination of the exported cash flows that are being discounted.
B) it should reflect the currency of denomination of the imported cash flows that are being discounted.
C) it should only be stated in the foreign currency rate.
D) it should reflect the WACC as a general rule.

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