Firms, which have FDI projects in high-inflation countries:
A) tend to have low required rates of return.
B) can ignore inflation and changes in exchange rates because they cancel out each other.
C) view the projects less favourably than their subsidiaries.
D) almost invariably obtain negative net present values from these projects.
Correct Answer:
Verified
Q20: The payback period is not an appropriate
Q21: Which of the following is an example
Q22: FDI is perceived by the host countries
Q23: Which of the following factors are important
Q24: International capital budgeting is:
A) less complex than
Q26: Which one of the following features is
Q27: The net present value method:
A) takes account
Q28: A project with a net present value
Q29: The Weighted Average Cost of Capital:
A) equals
Q30: In order to account for any variation
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