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What is the correct course of action for the managers of the rm? a. Accept the project and then hedge or otherwise capture the project's

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What is the correct course of action for the managers of the rm? a. Accept the project and then hedge or otherwise capture the project's value if possible, as leaving the project unhedged is expected to reduce the magni- tude of the positive NPV for the parent due to the forecast real depreciation of the Danish krone against the Swedish krona. b. Accept the project and then, depending on the corporation's tolerance for risk, potentially leave the investment unhedged to take advantage of the expected real appreciation of the project's local currency (the Danish krone) against the parent company's home currency (the Swedish krona). c. Reject the project. It is both a bad project and there are unfavourable exchange rate forecasts. d. Reject the project but keep looking for positive-NPV projects in the Danish krone due to favourable exchange rate forecasts in its real value against the Swedish krona. e. Accept the project only if it is possible to hedge or otherwise structure the deal to lock in the positive Danish krone project value in the parent company's domestic Swedish krona terms

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