A foreign project generates a negative cash flow in year 1 and positive cash flows in years 2 through 5. The NPV for this project will be higher if the foreign currency _________ in year 1 and _________ in years 2 though 5.

A foreign project generates a negative cash flow in year 1 and positiv

1.	A foreign project generates a negative cash flow in year 1 and positive cash flows in years 2 through 5. The NPV for this project will be higher if the foreign currency _________ in year 1 and _________ in years 2 though 5.
A.	depreciates; depreciates
B.	appreciates; appreciates
C.	depreciates; appreciates
D.	appreciates; depreciates
Answer» D. appreciates; depreciates