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A US firm is evaluating a possible investment in Europe.All equity and debt used to finance the project will be provided by the US firm.The
A US firm is evaluating a possible investment in Europe.All equity and debt used to finance the project will be provided by the US firm.The net present values of the project are NPV()=1,000 and NPV($)=($400).
A) This project should be accepted because the foreign NPV (euros) is positive
B) The project should be rejected because the home country NPV (dollars) is negative
C) This project should be accepted because the average of the two NPV's is positive
D) As long as either of the two NPV's is positive, this project should be accepted
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