A French-based MNC has just established a subsidiary in Algeria. Shortly after the plant was built, the MNC determines that its exchange rate forecasts, which had previously indicated a slight appreciation in the Algerian dinar were probably false. Instead of a slight appreciation, the MNC now expects that the dinar will depreciate substantially due to political turmoil in Algeria. This new development would likely cause the MNC to __________ its estimate of the previously computed net present value.

• A. lower
• B. increase
• C. lower, but not necessarily if the MNC invests enough in Algeria to offset the decrease in NPV
• D. increase, but not necessarily if the MNC reduces its investment in Algeria by an offsetting amount