International capital budgeting differs from the domestic version because (1) cash inflows and outflows occur in a foreign currency, and (2) foreign investments potentially face significant political risk.

Question

Quizplus · Accepted Answer

International capital budgeting involves dealing with cash flows in a foreign currency and potential political risks, both of which are not present in domestic capital budgeting.

International Capital Budgeting Differs from the Domestic Version Because (1)