In Capital Budgeting for a Multinational, the Starting Discount Rate

In capital budgeting for a multinational, the starting discount rate to which risks stemming fromforeign exchange and political factors can be added, and from which benefits reflecting the parent'slower capital costs may be subtracted is

A) the cost of capital of the parent (multinational) company.
B) the local cost of equity capital applicable to the local business and financial environments within which a subsidiary operates.
C) the risk-free rate of the parent company, adjusted for risk relevant to the foreign subsidiary.
D) the weighted average cost of capital applicable to all foreign subsidiaries combined.