sir international investment appraisal, how do we know for certainty which currency should we used throughout the NPVanalysis?
Ask the Tutor ACCA AFM
yilandwe (june15) and tramont(pilot 12)
5y ago#1As I explain in my free lectures on this (have you actually bothered to watch the lectures?), you calculate the cash flows in the other country (in the other countries currency). Then you convert the amounts remitted to the home country using the relevant exchange rates. Then you you calculate the NPV's in the home country's currency using the relevant discount rate.
Sign into reply to this topic.