A previously undertaken project in a foreign country may no longer be feasible because:

Question

Quizplus · Accepted Answer

An increase in tax rates by the host government could substantially increase the MNC's cost of operating in the foreign country, making the project no longer financially feasible. The other choices, such as a decline in interest rates or a decrease in the MNC's cost of capital, may actually make the project more attractive. Additionally, a change in exchange rate projections, whether from depreciation to appreciation or the opposite, could affect the project's profitability, but it may not necessarily make it unfeasible. Thus, C is the best choice.

A Previously Undertaken Project in a Foreign Country May No