International capital budgeting

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International Capital Budgeting

An investment in a foreign subsidiary is estimated to have a positive NPV after the discount rate used in the calculations is adjusted for political risk and any advantages from diversification. Does that mean the project is acceptable? Why or why not?

Multinationla Corporations

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Given that many multinationals based in many countries have much greater sales outside their domestic markets than within them, what is the particular relevance of their domestic currency?

 

 

Reference no: EM13831783

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