Warden Co. is considering a project in Venezuela that will be very profitable if the local currency
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Warden Co. is considering a project in Venezuela that will be very profitable if the local currency (bolivar) appreciates against the dollar. If the bolivar depreciates, the project will result in losses. Warden Co. forecasts that the bolivar will appreciate. The bolivar’s value historically has been very volatile. As a manager of Warden Co., would you be comfortable with this project? Explain.
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