Question:In a calculation of the net present value of an overseas project, which of the following is true in a situation where there is a d*uation of sterling relative to the foreign currency?
  A. Sterling value of cash flows increases and NPV increases.
  B. Sterling value of cash flows remains constant and NPV falls.
  C. Sterling value of cash flows falls and NPV falls.
  D. Sterling value of cash flows remains constant and NPV increases.
  The correct answer is: Sterling value of cash flows increases and NPV increases.
  Where there is a d*uation of sterling relative to the foreign currency, the sterling value of the cash flows increases and the NPV of the project increases.