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For the purpose of applying the discounted cash flow (DCF) method to perform cross border capital budgeting, cash flows denominated in a foreign currency and

For the purpose of applying the discounted cash flow (DCF) method to perform cross border capital budgeting, cash flows denominated in a foreign currency and originating from the foreign country should be _____________.

A. discounted using the foreign cost of capital as discount rate.

B. discounted using the domestic cost of capital as discount rate.

C. converted to the domestic currency and then discounted using the foreign cost of capital as discount rate.

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