Question: Please answer the following questions regarding multinational financial management: Why is it wrong to just convert all international project cash flows to dollars at the

Please answer the following questions regarding multinational financial management:

Why is it wrong to just convert all international project cash flows to dollars at the current spot exchange rate?

Why is it wrong to just calculate the NPV of international project cash flows using the foreign denominated cash flows and then just convert that NPV to dollars at the spot rate?

How are exchange rates quoted?

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