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THE NEXT TWO QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION Which of the following is correct? a . NPV from project's perspective is positive and

THE NEXT TWO QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION
Which of the following is correct?
a. NPV from project's perspective is positive and NPV from parent firm's perspective is positive.
b. NPV from project's perspective is positive and NPV from parent firm's perspective is negative.
c. NPV from project's perspective is negative and NPV from parent firm's perspective is positive.
d. NPV from project's perspective is negative and NPV from parent firm's perspective is negative.
Which of the following would be correct?
a. The firm is using the project to engage in currency speculation.
b. The firm does not need to hedge the project's expected cash flows from foreign exchange rate risk.
c. The firm does need to hedge the project's expected cash flows from foreign exchange rate risk.
d. The firm should simply reject the project. It is value destroying.
e. The firm should sell the project to a local investor today, to capture the NPV.
f. None of the options in this question.
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