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