The most important consideration in international capital budgeting is (are):

Question

Quizplus · Accepted Answer

Both the impact of foreign currency on the cash flows of the project and the impact of political risk are important considerations in international capital budgeting. The NPV model does indeed apply to international projects, but the impacts of foreign currency and political risk must be thoroughly analyzed in order to accurately assess the project's potential returns. Therefore, choice D is the most accurate answer.

The Most Important Consideration in International Capital Budgeting Is (Are)