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Approaches: a. Generally produces more reliable results than those found using the foreign currency approach. b. Requires an applicable exchange rate for every time period
Approaches: a. Generally produces more reliable results than those found using the foreign currency approach. b. Requires an applicable exchange rate for every time period for which there is a cash flow. c. Uses the current risk-free nominal rate to discount all cash flows related to a project. D. Stresses the use of the real rate of return to compute the net present value (NVP) of a project. E. Converts a foreign denominated NPV into a dollar denominated NPV
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