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QUESTION 24 Which of the following factors is relevant in evaluating the cash flows of international...

QUESTION 24

  1. Which of the following factors is relevant in evaluating the cash flows of international projects?

    future inflation

    blocked funds

    exchange rates

    All of these are correct.
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Answer #1

The inflation rate is one of the biggest factors that affect the exchange rates. Hence it is a crucial factor to evaluate the cash flows of international project. The current and future exchange rates will determine the amount of investment required and the profit generated in terms of domestic currency. Blocked funds are the funds that were to be transferred that are blocked by the government of the country where the funds have been generated. Hence, the correct options is-

All of these are correct.

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