Q. A foreign project generates a negative cash flow in year 1 and positive cash flows in years 2 through 5. The NPV for this project will be higher if the foreign currency _________ in year 1 and _________ in years 2 though 5. (Solved)

1. depreciates; depreciates

2. appreciates; appreciates

3. depreciates; appreciates

4. appreciates; depreciates

  • c. depreciates; appreciates
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