A firm may incorporate a country risk rating into the capital budgeting analysis by:
A) adjusting the NPV upward if the country risk rating has fallen (implying increased risk) below a benchmark level.
B) adjusting the discount rate upward as the country risk rating decreases (implying increased risk) .
C) adjusting the NPV upward if the country risk rating has fallen (implying increased risk) below a benchmark level AND adjusting the discount rate upward as the country risk rating decreases (implying increased risk) .
D) None of these are correct.
Correct Answer:
Verified
Q47: _ involves the collection of independent opinions
Q48: Which of the following is not a
Q49: The Delphi technique:
A) is a method of
Q50: If a foreign country's consumers tend to
Q51: _ is (are) not a form of
Q52: When determining whether a particular proposed project
Q54: Higher interest rates in a foreign country
Q55: _ is(are) not a political risk factor.
A)
Q56: According to the text, the most appropriate
Q57: An MNC has a foreign manufacturing plant
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents