Which of the following statements regarding international projects is FALSE?
A) Interest rates and costs of capital will likely be different in the foreign country as a result of the macroeconomic environment.
B) The project will most likely generate foreign currency cash flows,although the firm cares about the foreign currency value of the project.
C) Under internationally integrated capital markets,the value of an investment does not depend on the currency we use in the analysis.
D) The firm will probably face a different tax rate in the foreign country and will be subject to both foreign and domestic tax codes.
Correct Answer:
Verified
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