Firms must consider the impact of exchange rate risk if ________ of the project are affected by exchange rate changes.

Question

Quizplus · Accepted Answer

The impact of exchange rate risk must be considered if cash flows of the project are affected by exchange rate changes. Revenues, costs, and capital costs are all important factors to consider, but cash flows are the most directly impacted by changes in exchange rates.

Firms Must Consider the Impact of Exchange Rate Risk If