The feasibility of the capital budgeting analysis can vary with the perspective because the net after-tax cash inflows to the subsidiary can differ substantially from those to the parent. Such differences can be due to which of the following factors:
A) tax differentials.
B) restricted remittances.
C) exchange rate movements.
D) all of the above.

Question

Quizplus · Accepted Answer

Differences in net after-tax cash inflows can arise due to tax differentials, restricted remittances, and exchange rate movements, all of which can affect the cash flows between a subsidiary and its parent company.

The Feasibility of the Capital Budgeting Analysis Can Vary with the Perspective