Which of the following is NOT a factor that should be considered when deciding whether the required rate of return for international projects should be different from that of similar domestic projects?

Question

Quizplus · Accepted Answer

Interest rates are a factor in determining the cost of capital and affect both domestic and international projects similarly. They are not a specific consideration that would lead to a different required rate of return for international projects compared to domestic ones. Factors like international market segmentation, risk of expropriation, foreign exchange controls, and foreign taxes directly impact the risk and potential returns of international projects, making them specific considerations for adjusting the required rate of return.

Which of the Following Is NOT a Factor That Should