A previously undertaken project in a foreign country may no longer be feasible because:
A) the MNC is unable to raise sufficient funds in order to undertake the project.
B) the MNC's cost of capital has decreased.
C) the host government has increased its tax rates substantially.
D) exchange rate projections changed from a depreciation to an appreciation of the foreign currency.

Question

Quizplus · Accepted Answer

A substantial increase in the host government's tax rates can significantly affect the project's profitability, making it no longer feasible.

A Previously Undertaken Project in a Foreign Country May No