Concerned about political risk

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Reference no: EM131089251

Which one of the following is advised when evaluating a capital project in a foreign country if you are concerned about political risk?

The project cash flows should be decreased to account for the political risk.

The project should be abandoned until this risk is eliminated.

The domestic discount rate should be increased to account for the added risk.

The project's cost of capital rate should be decreased to offset the perceived risk.

Reference no: EM131089251

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