Which of the following statements is true of the capital budgeting used in international businesses?
A) Capital budgeting does not provide a connection between cash flows to the parent and subsidiaries.
B) Its basic framework is vastly different from the framework of domestic capital budgeting.
C) Capital budgeting does not consider the cash flows between subsidiaries of a firm.
D) It enables top managers to compare different investment alternatives in an objective fashion.
Correct Answer:
Verified
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