Foreign projects often involves additional complexities

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Reference no: EM131924021

Capital budgeting for a foreign projects often involves additional complexities. Discuss any two of them.

When analyzing a foreign investment project from the parent’s viewpoint, the additional risks involved can be accounted for in two ways: (i) adjusting the discount rate or (ii) adjusting the cash flows. Discuss one advantage and one disadvantage of each of these methods.

Reference no: EM131924021

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