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    Principles of Managerial Finance
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    Exam 12: Risk and Refinements in Capital Budgeting
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    The Danger That an Unexpected Change in the Exchange Rate
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The Danger That an Unexpected Change in the Exchange Rate

Question 22

Question 22

True/False

The danger that an unexpected change in the exchange rate between the dollar and the currency in which a project's cash flows are denominated will reduce the market value of that project's cash flow is called exchange rate risk.

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