When a firm analyzes the feasibility of a project, it should consider:
A) the variability of the project's cash flow.
B) the correlation of the project's cash flow relative to the prevailing cash flows of the MNC.
C) A and B
D) none of the above.

Question

Quizplus · Accepted Answer

A firm should consider both the variability of the project's cash flow and its correlation with the MNC's prevailing cash flows to assess risk and potential impact on the firm's overall financial performance.

When a Firm Analyzes the Feasibility of a Project, It