The home currency approach is a method for evaluating overseas projects. This technique converts foreign currency cash flows to the home currency of the parent firm. Assuming that the home currency is the US dollar, it then discounts the US dollar cash flows at the project’s US minimum required return to find the net present value. The financial analyst can rely on forecasting services that analyze relative economic and political trends to predict future spot rates. Once the foreign cash flows are converted to dollars, the NPV calculation using the project’s US required return is straightforward.